Electronic commerce transactions within a marketing system that may contain a membership buying opportunity

ABSTRACT

The present invention is directed to a system and method for providing complete electronic commerce (“E-Commerce”) transactions and solutions for a marketing company&#39;s products via the World Wide Web, including facilities for signing up new customers and recruiting, training and supporting new Independent Business Owners through an interactive online process. In another aspect, the present invention relates to the combination of a marketing business with a membership buying opportunity using both electronic commerce and face-to-face transactions. The present invention is also directed to a system and method for combining a marketing business with a membership buying opportunity, so that Independent Business Owners participating in the marketing plan can introduce customers to a membership buying opportunity and earn bonuses or commissions based on the purchases by those members, while Members in the buying opportunity can consume products or, at their option, qualify to become Independent Business Owners.

REFERENCE TO RELATED APPLICATIONS

This application is a continuation under 37 C.F.R. §1.53(b) of U.S.patent application Ser. No. 13/543,133 filed Jul. 6, 2012 (AttorneyDocket 9974/354), which is a divisional under 37 C.F.R. §1.53(b) of U.S.patent application Ser. No. 12/821,385 filed Jun. 23, 2010 (AttorneyDocket 9974/192) now U.S. Pat. No. 8,239,272, which is a continuationunder 37 C.F.R. §1.53(b) of U.S. patent application Ser. No. 11/453,624filed Jun. 15, 2006 (Attorney Docket 9974/118) now U.S. Pat. No.7,778,884, which is a continuation under 37 C.F.R. §1.53(b) of U.S.patent application Ser. No. 09/714,739 filed Nov. 16, 2000 (AttorneyDocket No. 9974/56) now U.S. Pat. No. 7,359,871, which is a continuationof U.S. patent application Ser. No. 09/515,860, filed Feb. 29, 2000, nowU.S. Pat. No. 6,980,962, which claims benefit of U.S. ProvisionalApplication Ser. Nos. 60/126,493, filed Mar. 25, 1999 and 60/122,385,filed Mar. 2, 1999, the entirety of each being herein incorporated byreference.

BACKGROUND

1. Field of the Invention

The present invention relates generally to electronic commercetransactions. More particularly, the present invention relates toelectronic commerce transactions with a marketing company. The inventionalso relates to using electronic networks to manage independentbusinesses associated with the marketing company.

2. Related Art

The Internet is becoming the world's new market place. The number ofpeople and businesses that have access to the Internet is growingrapidly. Businesses are increasingly interested in selling and marketingproducts and services over the Internet, particularly via the World WideWeb (“WWW”).

In particular, marketing companies, including multilevel marketingcompanies, are increasingly becoming familiar with the power of theInternet and its reach to potential new customers and members.Heretofore, however, the full capabilities of the Internet to provide acomplete opportunity for electronic commerce with a marketing system incombination with a membership buying club have not been achieved.

For example, conventional systems and methods for carrying outelectronic transactions, such as shopping, have generally requiredseparate electronic shopping baskets when shopping from variousmerchants that may be associated with a particular web site. Inaddition, conventional systems have generally not been capable ofproviding a distribution system that allows distribution of the productsof several sellers. Indeed, such distribution systems have not allowedproducts to be distributed through a single independent sales networkbut with different levels and structures of compensation for differentproduct lines.

Conventional multilevel marketing systems, in particular, have generallynot been able to provide a system for allowing members within the systemto purchase directly from a marketing company associated with themarketing system. Moreover, these conventional systems have generallynot provided bonuses and/or commissions based upon sales made directlyto the members by the marketing company as well as sales made to themembers from a member's sponsor. Indeed, conventional multilevelmarketing companies have relied upon the shear number of thedistributors or members associated with the marketing company to promoteand market its products and services as well as add members to themarketing system. Moreover, those companies doing business over theInternet have generally required that a shopper purchase products via aweb page that is sponsored by one of the members of the marketingcompany.

Thus, there is a need to overcome the disadvantages described above.There is a particular need to provide a system and method for a singlemarketing distribution system that can distribute the products ofseveral different sellers, all distributed through a single independentsales network but with different levels and structures of compensationfor different product lines. There is a further need to allow shoppersto shop for and buy products from different sources in a singletransaction. There is a particular need to provide a system and methodthat allows a shopper to purchase products directly from a marketingcompany, a registered business owner, and a merchant partner and to doso using an electronic shopping basket that is preferably persistentthroughout the web site.

SUMMARY

The present invention solves the problems with, and overcomes thedisadvantages of, conventional marketing systems.

The present invention relates to a method for facilitating electroniccommerce transactions in a marketing system through a network, thenetwork comprising at least one server computer capable of communicatingwith a browser system located at a remote client computer. The methodincludes establishing an interactive online registration process betweenthe client browser system and the server computer so that an individualmay register with the marketing system as a Client, a Member, or aMember Plus, wherein a Client is not eligible to earn compensation andis eligible to buy products at a Client price, wherein a Member iseligible to buy products at a Member price and is not eligible to earncompensation, and wherein a Member Plus is eligible to buy products at aMember Plus price, and wherein a Member Plus qualifies to earncompensation by satisfying a sales qualification level and therebyqualifying as an IBO, wherein each IBO is eligible to buy products at anIBO price and is eligible to earn compensation. The method furtherincludes providing a plurality of web files operatively coupled to a website associated with the marketing system. Additionally, the methodincludes allowing access to a plurality of marketing system products andservices to the registered Client, Member, Member Plus, or IBO via atleast one of the plurality of web files.

In another aspect, the present invention relates to a method forfacilitating an on-line shopping and rewards program through a network,the network comprising at least one server computer capable ofcommunicating with a browser system located at a remote client computer.The method includes establishing an interactive online registrationprocess between the client browser system and the server computer sothat an individual may register with the marketing system as a Client, aMember, or a Member Plus, wherein a Client is not eligible to earncompensation and is eligible to buy products at a Client price, whereina Member is eligible to buy products at a Member price and is noteligible to earn compensation, and wherein a Member Plus is eligible tobuy products at a Member Plus price, and wherein a Member Plus qualifiesto earn compensation by satisfying a sales qualification level andthereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Themethod further includes maintaining a catalog comprising marketingsystem products and services on the server computer. Additionally, themethod includes: maintaining a rewards database on the server computerfor storing reward points corresponding to a registered Client, Member,Member Plus, and IBO; assigning a rewards value to the marketing systemproducts and services and storing the rewards value in the catalog;assigning a redemption value to the marketing system products andservices and storing the redemption value in the catalog; providingon-line access to the catalog to a registered Client, Member, MemberPlus, and IBO via an on-line order form; allowing the registered Client,Member, Member Plus, and IBO to submit an order for marketing systemproducts and services via the on-line order form; providing on-lineaccess to the catalog to a registered Client, Member, Member Plus, andIBO via an on-line redemption form; allowing the registered Client,Member, Member Plus, and IBO to submit a rewards exchange request formarketing system products and services via the on-line redemption form;and subtracting from the rewards database a redemption valuecorresponding to the marketing system products and services chosen bythe registered Client, Member, Member Plus, and IBO.

In another aspect, the present invention relates to a system forfacilitating an on-line shopping and rewards program. The systemincludes a computer system accessible for on-line interactivecommunication. The computer system includes a memory device havingembodied therein information relating to a plurality of marketing systemproducts and services and a processor in communication with said memorydevice. The processor is preferably configured for establishing aninteractive online registration process so that an individual mayregister with the marketing system as a Client, a Member, or a MemberPlus, wherein a Client is not eligible to earn compensation and iseligible to buy products at a Client price, wherein a Member is eligibleto buy products at a Member price and is not eligible to earncompensation, and wherein a Member Plus is eligible to buy products at aMember Plus price, and wherein a Member Plus qualifies to earncompensation by satisfying a sales qualification level and therebyqualifying as an IBO, wherein each IBO is eligible to buy products at anIBO price and is eligible to earn compensation.

The processor is preferably additionally configured for: maintaining acatalog comprising marketing system products and services; maintaining arewards database for storing reward points corresponding to a registeredClient, Member, Member Plus, and IBO; assigning a rewards value to themarketing system products and services and storing the rewards value inthe catalog; assigning a redemption value to the marketing systemproducts and services and storing the redemption value in the catalog;providing on-line access to the catalog to a registered Client, Member,Member Plus, and IBO via an on-line order form; allowing the registeredClient, Member, Member Plus, and IBO to submit an order for marketingsystem products and services via the on-line order form; providingon-line access to the catalog to a registered Client, Member, MemberPlus, and IBO via an on-line redemption form; allowing the registeredClient, Member, Member Plus, and IBO to submit a rewards exchangerequest for marketing system products and services via the on-lineredemption form; and subtracting from the rewards database a redemptionvalue corresponding to the marketing system products and services chosenby the registered Client, Member, Member Plus, and IBO.

In another aspect, the present invention is related to a computerprogram product comprising a computer useable medium having computerprogram logic recorded thereon for enabling a processor in a computersystem to facilitate an on-line shopping and rewards program. Thecomputer program includes establishing means for enabling the processorto establish an interactive online registration process so that anindividual may register with the marketing system as a Client, a Member,or a Member Plus, wherein a Client is not eligible to earn compensationand is eligible to buy products at a Client price, wherein a Member iseligible to buy products at a Member price and is not eligible to earncompensation, and wherein a Member Plus is eligible to buy products at aMember Plus price, and wherein a Member Plus qualifies to earncompensation by satisfying a sales qualification level and therebyqualifying as an IBO, wherein each IBO is eligible to buy products at anIBO price and is eligible to earn compensation.

The computer program preferably additionally includes: catalogmaintaining means for enabling the processor to maintain a catalogcomprising marketing system products and services; rewards databasemaintaining means for enabling the processor to maintain a rewardsdatabase for storing reward points corresponding to a registered Client,Member, Member Plus, and IBO; rewards value assigning means for enablingthe processor to assign a rewards value to the marketing system productsand services and storing the rewards value in the catalog; redemptionvalue assigning means for enabling the processor to assign a redemptionvalue to the marketing system products and services and storing theredemption value in the catalog; first providing means for enabling theprocessor to provide on-line access to the catalog to a registeredClient, Member, Member Plus, and IBO via an on-line order form; firstallowing means for enabling the processor to allow the registeredClient, Member, Member Plus, and IBO to submit an order for marketingsystem products and services via the on-line order form; secondproviding means for enabling the processor to provide on-line access tothe catalog to a registered Client, Member, Member Plus, and IBO via anon-line redemption form; second allowing means for enabling theprocessor to allow the registered Client, Member, Member Plus, and IBOto submit a rewards exchange request for marketing system products andservices via the on-line redemption form; and subtracting means forenabling the processor to subtract from the rewards database aredemption value corresponding to the marketing system products andservices chosen by the registered Client, Member, Member Plus, and IBO.

In another aspect, the present invention is related to a method forfacilitating electronic commerce transactions in a marketing systemthrough a network, the network comprising at least one server computercapable of communicating with a browser system located at a remoteclient computer. The method includes providing a user with on-lineaccess to a home page file for electronic commerce transactions, whereinthe user may register with the marketing system as a Client, a Member,or a Member Plus, wherein a Client is not eligible to earn compensationand is eligible to buy products at a Client price, wherein a Member iseligible to buy products at a Member price and is not eligible to earncompensation, and wherein a Member Plus is eligible to buy products at aMember Plus price, and wherein a Member Plus qualifies to earncompensation by satisfying a sales qualification level and therebyqualifying as an IBO, wherein each IBO is eligible to buy products at anIBO price and is eligible to earn compensation. The method preferablyadditionally includes providing a plurality of shopping page web filesfor buying products and services from a marketing company associatedwith the marketing system, and providing at least one vendor partnerpage web file for buying products and services from a vendor partnerassociated with the marketing system.

In another aspect, the present invention relates to a system forfacilitating electronic commerce transactions in a marketing system. Thesystem includes a memory device having embodied therein informationrelating to a plurality of marketing system products and services. Thesystem further includes a processor in communication with said memorydevice. The processor is preferably configured for providing a user withon-line access to a home page file for electronic commerce transactions,wherein the user may register with the marketing system as a Client, aMember, or a Member Plus, wherein a Client is not eligible to earncompensation and is eligible to buy products at a Client price, whereina Member is eligible to buy products at a Member price and is noteligible to earn compensation, and wherein a Member Plus is eligible tobuy products at a Member Plus price, and wherein a Member Plus qualifiesto earn compensation by satisfying a sales qualification level andthereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Theprocessor is additionally configured for providing a plurality ofshopping page web files for buying products and services from amarketing company associated with the marketing system, and forproviding at least one vendor partner page web file for buying productsand services from a vendor partner associated with the marketing system.

In another aspect, the present invention relates to a computer programproduct comprising a computer useable medium having computer programlogic recorded thereon for enabling a processor in a computer system tofacilitate electronic commerce transactions in a marketing system. Thecomputer program logic includes providing means for enabling theprocessor to provide a user with on-line access to a home page file forelectronic commerce transactions, wherein the user may register with themarketing system as a Client, a Member, or a Member Plus, wherein aClient is not eligible to earn compensation and is eligible to buyproducts at a Client price, wherein a Member is eligible to buy productsat a Member price and is not eligible to earn compensation, and whereina Member Plus is eligible to buy products at a Member Plus price, andwherein a Member Plus qualifies to earn compensation by satisfying asales qualification level and thereby qualifying as an IBO, wherein eachIBO is eligible to buy products at an IBO price and is eligible to earncompensation. The computer program logic further includes providingmeans for enabling the processor to provide a plurality of shopping pageweb files for buying products and services from a marketing companyassociated with the marketing system, and providing means for enablingthe processor to provide at least one vendor partner page web file forbuying products and services from a vendor partner associated with themarketing system.

In another aspect, the present invention is related to a system forfacilitating electronic commerce transactions in a marketing system. Thesystem includes a memory device having embodied therein informationrelating to a plurality of marketing system products and a processor incommunication with the memory device. The processor is preferablyconfigured for establishing an interactive online registration processso that an individual may register with the marketing system as aClient, a Member, or a Member Plus, wherein a Client is not eligible toearn compensation and is eligible to buy products at a Client price,wherein a Member is eligible to buy products at a Member price and isnot eligible to earn compensation, and wherein a Member Plus is eligibleto buy products at a Member Plus price, and wherein a Member Plusqualifies to earn compensation by satisfying a sales qualification leveland thereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Theprocessor is further configured for providing a plurality of web filesoperatively coupled to a web site associated with the marketing system,and allowing access to a plurality of marketing system products andservices to the registered Client, Member, Member Plus, or IBO via atleast one of the plurality of web files.

In another aspect, the present invention relates to a computer programproduct comprising a computer useable medium having computer programlogic recorded thereon for enabling a processor in a computer system tofacilitate electronic commerce transactions in a marketing system. Thecomputer program logic includes establishing means for enabling theprocessor to establish an interactive online registration process sothat an individual may register with the marketing system as a Client, aMember, or a Member Plus, wherein a Client is not eligible to earncompensation and is eligible to buy products at a Client price, whereina Member is eligible to buy products at a Member price and is noteligible to earn compensation, and wherein a Member Plus is eligible tobuy products at a Member Plus price, and wherein a Member Plus qualifiesto earn compensation by satisfying a sales qualification level andthereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Thecomputer program logic further includes providing means for enabling theprocessor to provide a plurality of web files operatively coupled to aweb site associated with the marketing system and allowing means forenabling the processor to allow access to a plurality of marketingsystem products and services to the registered Client, Member, MemberPlus, or IBO via at least one of the plurality of web files.

In another aspect, the present invention relates to a method ofmarketing and selling products through a marketing system. The methodincludes registering individuals with the marketing system as a Client,a Member, or a Member Plus, wherein a Client is not eligible to earncompensation and is eligible to buy products at a Client price, whereina Member is eligible to buy products at a Member price and is noteligible to earn compensation, and wherein a Member Plus is eligible tobuy products at a Member Plus price, and wherein a Member Plus qualifiesto earn compensation by satisfying a sales qualification level andthereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Themethod further includes allowing the registered Client, Member, MemberPlus, or IBO to purchase products directly from a marketing companyassociated with the marketing system, and compensating an individual whohas qualified as an IBO based on sales of marketing system products, themarketing system products comprising products of the marketing company.

In another aspect, the present invention relates to a method ofmarketing and selling products through a marketing system. The methodincludes establishing a plurality of participation categories within themarketing system, the participation categories comprising a Client, aMember, a Member Plus, and an Independent Business Owner (IBO), whereinthe Client is not eligible to earn compensation and is eligible to buyproducts at a Client price, wherein the Member is eligible to buyproducts at a Member price and is not eligible to earn compensation, andwherein the Member Plus is eligible to buy products at a Member Plusprice, wherein the Member Plus qualifies to earn compensation bysatisfying a sales qualification level and thereby qualifying as an IBO.The method further includes selling products directly from a marketingcompany associated with the marketing system to a participant in atleast one of the participation categories and selling products from anIBO or a Member Plus to a participant in at least one of theparticipation categories and to a non-participant outside the marketingsystem. In addition, the method includes compensating the IBO based onproduct sales.

In another aspect, the present invention relates to a system forfacilitating electronic commerce transactions in a marketing system. Thesystem includes a memory device having embodied therein informationrelating to a plurality of marketing system products and a processor incommunication with the memory device. The processor is configured forregistering individuals with the marketing system as a Client, a Member,or a Member Plus, wherein a Client is not eligible to earn compensationand is eligible to buy products at a Client price, wherein a Member iseligible to buy products at a Member price and is not eligible to earncompensation, and wherein a Member Plus is eligible to buy products at aMember Plus price, and wherein a Member Plus qualifies to earncompensation by satisfying a sales qualification level and therebyqualifying as an IBO, wherein each IBO is eligible to buy products at anIBO price and is eligible to earn compensation. The processor is furtherconfigured for allowing the registered Client, Member, Member Plus, orIBO to purchase products directly from a marketing company associatedwith the marketing system, and for compensating an individual who hasqualified as an IBO based on sales of marketing system products. Themarketing system products preferably include products of the marketingcompany.

In another aspect, the present invention relates to a computer programproduct comprising a computer useable medium having computer programlogic recorded thereon for enabling a processor in a computer system tofacilitate electronic commerce transactions in a marketing system. Thecomputer program logic includes registering means for enabling theprocessor to register individuals with the marketing system as a Client,a Member, or a Member Plus, wherein a Client is not eligible to earncompensation and is eligible to buy products at a Client price, whereina Member is eligible to buy products at a Member price and is noteligible to earn compensation, and wherein a Member Plus is eligible tobuy products at a Member Plus price, and wherein a Member Plus qualifiesto earn compensation by satisfying a sales qualification level andthereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Thecomputer program logic further includes allowing means for enabling theprocessor to allow the registered Client, Member, Member Plus, or IBO topurchase products directly from a marketing company associated with themarketing system, and compensating means for enabling the processor tocompensate an individual who has qualified as an IBO based on sales ofmarketing system products. The marketing system products preferablyinclude products of the marketing company.

In another aspect, the present invention relates to a system forfacilitating electronic commerce transactions in a marketing system. Thesystem includes a memory device having embodied therein informationrelating to a plurality of marketing system products and a processor incommunication with said memory device. The processor is preferablyconfigured for establishing a plurality of participation categorieswithin the marketing system, the participation categories comprising aClient, a Member, a Member Plus, and an Independent Business Owner(IBO), wherein the Client is not eligible to earn compensation and iseligible to buy products at a Client price, wherein the Member iseligible to buy products at a Member price and is not eligible to earncompensation, and wherein the Member Plus is eligible to buy products ata Member Plus price, wherein the Member Plus qualifies to earncompensation by satisfying a sales qualification level and therebyqualifying as an IBO. The processor is further configured for sellingproducts directly from a marketing company associated with the marketingsystem to a participant in at least one of the participation categories,for selling products from an IBO or a Member Plus to a participant in atleast one of the participation categories, and for compensating the IBObased on product sales.

In another aspect, the present invention relates to a computer programproduct comprising a computer useable medium having computer programlogic recorded thereon for enabling a processor in a computer system tofacilitate electronic commerce transactions in a marketing system. Thecomputer program logic includes establishing means for enabling theprocessor to establish a plurality of participation categories withinthe marketing system, the participation categories comprising a Client,a Member, a Member Plus, and an Independent Business Owner (IBO),wherein the Client is not eligible to earn compensation and is eligibleto buy products at a Client price, wherein the Member is eligible to buyproducts at a Member price and is not eligible to earn compensation, andwherein the Member Plus is eligible to buy products at a Member Plusprice, wherein the Member Plus qualifies to earn compensation bysatisfying a sales qualification level and thereby qualifying as an IBO.The computer program logic further includes selling means for enablingthe processor to sell products directly from a marketing companyassociated with the marketing system to a participant in at least one ofthe participation categories, selling means for enabling the processorto sell products from an IBO or a Member Plus to a participant in atleast one of the participation categories, and compensating means forenabling the processor to compensate the IBO based on product sales.

In another aspect, the present invention relates to a method forfacilitating electronic commerce transactions in a marketing systemthrough a network, the network comprising at least one server computercapable of communicating with a browser system located at a remoteclient computer. The method includes establishing an interactive onlineregistration process between the client browser system and the servercomputer so that an individual may register with the marketing system asa Client, a Member, or a Member Plus, wherein a Client is not eligibleto earn compensation and is eligible to buy products at a Client price,wherein a Member is eligible to buy products at a Member price and isnot eligible to earn compensation, and wherein each IBO is eligible tobuy products at an IBO price and is eligible to earn compensation. Themethod further includes providing a plurality of web files operativelycoupled to a web site associated with the marketing system and allowingaccess to a plurality of marketing system products and services to theregistered Client, Member, or IBO via at least one of the plurality ofweb files.

In another aspect, the present invention relates to a method forfacilitating an on-line shopping and rewards program through a network,the network including at least one server computer capable ofcommunicating with a browser system located at a remote client computer.The method includes establishing an interactive online registrationprocess between the client browser system and the server computer sothat an individual may register with the marketing system as a Client, aMember, or a Member Plus, wherein a Client is not eligible to earncompensation and is eligible to buy products at a Client price, whereina Member is eligible to buy products at a Member price and is noteligible to earn compensation, and wherein a Member Plus is eligible tobuy products at a Member Plus price, and wherein a Member Plus qualifiesto earn compensation by satisfying a sales qualification level andthereby qualifying as an IBO, wherein each IBO is eligible to buyproducts at an IBO price and is eligible to earn compensation. Themethod also includes maintaining a catalog comprising marketing systemproducts and services on the server computer and maintaining a rewardsdatabase on the server computer for storing reward points correspondingto a registered Member. The method further includes assigning a rewardsvalue to the marketing system products and services and storing therewards value in the catalog. In addition, the method includes assigninga redemption value to the marketing system products and services andstoring the redemption value in the catalog and providing on-line accessto the catalog to a registered Member via an on-line order form. Themethod also includes allowing the registered Member to submit an orderfor marketing system products and services via the on-line order formand providing on-line access to the catalog to a registered Member viaan on-line redemption form. The method further includes allowing theregistered Member to submit a rewards exchange request for marketingsystem products and services via the on-line redemption form andsubtracting from the rewards database a redemption value correspondingto the marketing system products and services chosen by the registeredMember.

In yet another aspect, the present invention relates to a method foraccumulating a list of products and services selected for purchase froma shopping page web file and a merchant partner page web file. Themethod includes accumulating a list of the products and servicesselected for purchase at a server computer and receiving at the servercomputer at least one of the products and services selected for purchasefrom one of the shopping page web file and the merchant partner page webfile. The method further includes at the server computer, adding to thelist each product and service received by said receiving step, whereinsaid adding step accumulates an updated list of the products andservices selected for purchase.

In another aspect, the present invention relates to a method forfacilitating electronic commerce transactions in a marketing systemthrough a network, the network comprising at least one server computercapable of communicating with a browser system located at a remoteclient computer. The method includes establishing an interactive onlineregistration process between the client browser system and the servercomputer so that a first individual may register with the marketingsystem. The method further includes providing a plurality of web filesoperatively coupled to a web site associated with the marketing systemand allowing access to a plurality of marketing system products andservices to the registered individual via at least one of the pluralityof web files. The method also includes assigning a second individual whoregisters with the marketing system to the first individual.

In another aspect, the present invention relates to a method forgranting access to a user to a first web page file. The method includesdetermining if the user has an authentication identifier and directingthe user to a marketing page web file if the user does not possess anauthentication identifier. The method further includes determining aparticipation level of the user if the user possesses an authenticationidentifier and granting access to the first web page file if theparticipation level of the user meets a predetermined access level. Themethod also includes directing the user to a second web page file if theparticipation level of the user does not meet the predetermined accesslevel.

In another aspect, the present invention relates to a method forfacilitating electronic commerce transactions in a marketing system. Themethod includes registering individuals with the marketing system as aClient, wherein the Client is not eligible to earn compensation and iseligible to purchase products at a Client price, a Member, wherein theMember is not eligible to earn compensation and is eligible to purchaseproducts at a Member price, or an IBO, wherein the IBO is eligible toearn compensation and is eligible to purchase products at an IBO price,which is less than a Member price.

Features and Advantages

A feature of the present invention is that it allows a marketing companyto increase sales and grow the company's business by increasing orders,appealing to new market segments, improving productivity, cross-selling,and implementing online incentives and promotions.

A further feature of the present invention is that it provides a systemand method for complete electronic commerce (“E-Commerce”) transactionsand solutions for a marketing company's products via the World Wide Web(“WWW”), including facilities for signing up new customers andrecruiting, training and supporting new Independent Business Owners(IBOs) (described in more detail below) through an interactive onlineprocess.

A further feature of the present invention is that it combines amarketing business with a membership buying opportunity, so that IBOsparticipating in the marketing plan can introduce customers to amembership buying opportunity and earn bonuses or commissions based onthe purchases by those members. Members in the buying opportunity canconsume products or, at their option, qualify to become IndependentBusiness Owners.

A further feature of the present invention is that it provides anelectronic product catalog that may enhance an Independent BusinessOwner's recruiting efforts, retain IBO's, and open up new channels forIBO's to sell products.

An additional feature of the present invention is that it enables an IBOand his or her customers to order directly from the marketing company.This reduces order entry time and costs, and relieves IBO's fromordering administration, reporting, order tracking and Standing OrderProduct (SOP) processing. It also gives individual customers controlover their shopping experience.

An additional feature of the present invention is that participants in amarketing business opportunity can introduce customers to membership ina membership buying opportunity and earn bonuses or commissions based onproduct purchases by those customers.

Another advantage of the present invention is that by providingopportunities for mass merchandising and targeted marketing, the presentinvention will allow business owners and the marketing company to gain agreater market share in particular product segments. The presentinvention also provides opportunities to identify new market segments sothat new products and services may be produced to satisfy these newmarket segments. In addition, by building customer profiles andpersonalizing messages to individual customers, the present inventionmay allow the marketing company to increase sales of the existingproducts to current customers.

A further advantage of the present invention is that a single marketingdistribution system can distribute the products of several differentsellers, all distributed through a single independent sales network butwith different levels and structures of compensation for differentproduct lines. The present invention advantageously allows shoppers toshop for and buy products from different sources in a singletransaction. The present invention further advantageously allowsIndependent Business Owners to earn income under a single marketing planfor selling a variety of different product lines in combinationsselected by each individual Independent Business Owner.

A further advantage of the present invention is that by catering tostreamlined and convenient ways of doing business and allowing themarketing company's IBOs a greater range of choices, the presentinvention can increase IBO retention.

Another advantage of the present invention is that the marketing companycan increase the level of service to its customers while driving downthe overall cost of doing business through efficient utilization of newtechnologies, particularly, although not limited to, Internet-relatedtechnologies.

A further advantage of the present invention is that the marketingcompany can build requisite customer data profiles and merchandizingexpertise necessary for large-scale direct customer merchandizing.

A further advantage of the present invention that it providesIndependent Business Owners in a marketing business with a “VirtualOffice” feature that provides information vital to the operation oftheir business, including, but not limited to information on differentproduct offerings and compensation systems, training, financialinformation, marketing support, customer profiles, and otherinformation. The present invention also advantageously providesdifferent levels of access to information about products and “VirtualOffice” functions to different categories of Independent BusinessOwners, so that each participant receives information and marketingmaterials targeted to their individual preferences and businesssituation.

A still further advantage of the present invention is that the inventionwill support and enhance the relationships between IBOs and theircustomers thereby improving growth in the customer base. Growth willresult in Web-generated leads, reducing communication time andincreasing efficiency.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated in and constitute apart of this specification, illustrate embodiments of the invention and,together with the description, serve to explain the features,advantages, and principles of the invention.

FIG. 1 shows a block diagram of one embodiment of the E-Commerce site ofthe present invention;

FIG. 2 shows a block diagram representing exemplary participation levelscomprising the marketing system of the present invention;

FIG. 3 shows a block diagram representing an exemplary personallysponsored group according to the present invention;

FIGS. 4 a-4 f show block diagrams of exemplary alternative registrationprocedures according to the present invention;

FIG. 5 shows an exemplary multi-tiered architecture system suitable foruse in the present invention;

FIG. 6 shows a flow chart depicting exemplary steps for administeringauthentication;

FIG. 7 shows an exemplary layout of a “Income options” page web file ofthe present invention;

FIGS. 8 a, 8 b, and 8 c show an exemplary interactive presentationwithin the Income options page web file of the present invention;

FIG. 9 shows an exemplary product list used for product browsing andshopping in the present invention;

FIG. 10 shows an exemplary shopping basket display page;

FIG. 11 shows an exemplary order preview page;

FIGS. 12 a-12 h show an exemplary layout of an exemplary shopping pageweb file of the present invention;

FIGS. 13 a-13 e show an exemplary layout of a second exemplary shoppingpage web file of the present invention;

FIGS. 14 a-14 e show an exemplary layout of a third exemplary shoppingpage web file of the present invention;

FIG. 15 shows an exemplary layout of a fourth exemplary shopping pageweb file of the present invention;

FIG. 16 shows an exemplary layout of a “Member Benefits” page web fileof the present invention;

FIG. 17 shows an exemplary page web file including those featuresavailable to a Client within the “My Business” page web file of thepresent invention;

FIG. 18 shows an exemplary page web file including those featuresavailable to a Member within the “My Business” page web file of thepresent invention;

FIG. 19 shows an exemplary page web file including those featuresavailable to an Independent Business Owner within the “My Business” pageweb file of the present invention;

FIG. 20 shows an exemplary catalog of products and services used in theon-line shopping and rewards program of the present invention;

FIG. 21 shows an exemplary layout of a “Virtual Office” page web file ofthe present invention;

FIG. 22 shows an exemplary display of the structure and content of LOS(Line of Sponsorship) information for an IBO of the present invention;

FIG. 23 shows an exemplary layout of a “Customer Service” page web fileof the present invention;

FIG. 24 shows an exemplary display of a Virtual Customer ServiceRepresentative of the present invention;

FIG. 25 shows a block diagram of an exemplary implementation of amarketing company network and communication over a network to a user;

FIG. 26 shows an exemplary computer system suitable for use with thepresent invention; and

FIG. 27 shows an exemplary flow diagram depicting the process by which auser administers a pre-paid postage label for product exchanges and/orreturns.

DETAILED DESCRIPTION OF THE DRAWINGS AND PRESENTLY PREFERRED EMBODIMENTSDefinitions

The following definitions are intended to provide clarity to variousterms used in the present invention. Any reference to products is donefor exemplary and/or explanatory purposes only. The breadth and scope ofthe present invention should not, however, be limited by any of theexemplary products or definitions disclosed herein.

ActiveX Data Objects (ADO)

ADO is an application program interface (API) from MicrosoftCorporation, Redmond, Wash. (“Microsoft”) that lets programmers writingWindows®, a registered trademark of the Microsoft Corporation, Redmond,Wash., applications get access to relational and non-relationaldatabases from both Microsoft and other database providers. For example,if it was desired to write a program that would provide users of a Website with data from an IBM DB2 database or an Oracle database, an ADOprogram statements could be included in an HTML file that was identifiedas an Active Server Page (ASP). When a user requested the page from theWeb site, the page sent back could include appropriate data from adatabase, obtained using ADO code.

ActiveX

A software module based on Microsoft's Component Object Model (COM)architecture. It enables a program to add functionality by callingready-made components that blend in and appear as normal parts of theprogram. They are typically used to add user interface functions, suchas 3-D toolbars, a notepad, calculator or even a spreadsheet.

ActiveX Control

An ActiveX control is a component program object that can be re-used bymany application programs within a computer or among computers in anetwork. The technology for creating ActiveX controls is part ofMicrosoft's overall ActiveX set of technologies, chief of which is theComponent Object Model (COM). ActiveX controls can be downloaded assmall programs or animations for Web pages, but they can also be usedfor any commonly-needed task by an application program in the latestWindows® and Macintosh®, a registered trademark of Apple Computer, Inc.,Cupertino, Calif., environments.

Animated GIF

An animated GIF is a graphic image on a Web page that moves—for example,a twirling icon or a banner with a hand that waves or letters that getlarger. In particular, an animated GIF is a file in the GraphicsInterchange Format specified as GIF89a that contains within the singlefile a set of images that are presented in a specified order. Ananimated GIF can loop endlessly or it can present one or a few sequencesand then stop the animation.

Anonymous E-Mail

Anonymous e-mail is e-mail that has been directed to a recipient througha third-party server that does not identify the originator of themessage.

API (Application Program Interface)

An API (application program interface) is the specific method prescribedby a computer operating system or by another application program bywhich a programmer writing an application program can make requests ofthe operating system or another application.

ASP-Active Server Page

A Web page that contains programming code written in VB Script orJavascript. This code was developed by Microsoft starting with Version3.0 of its Internet Information Server (IIS). When the IIS serverencounters an ActiveServer page that is requested by the browser, itexecutes the embedded program. Active Server Pages are Microsoft'salternative to CGI scripts, which allow Web pages to interact withdatabases and other programs. Active Server Pages generally use an“.ASP” extension.

Authentication

Authentication is the process of determining whether someone orsomething is, in fact, who or what it is declared to be. In private andpublic computer networks (including the Internet), authentication iscommonly done through the use of logon passwords. Knowledge of thepassword is assumed to guarantee that the user is authentic. Each userregisters initially (or is registered by someone else), using anassigned or self-declared password. On each subsequent use, the usermust know and use the previously declared password. The weakness in thissystem for transactions that are significant (such as the exchange ofmoney) is that passwords can often be stolen, accidentally revealed, orforgotten.

AVI

Windows® AVI provides the capability to develop animation files that canbe included in multimedia presentations and as part of World Wide Webpages. The files (which end with an .avi extension) require a specialplayer which may be included with a Web browser or may requiredownloading.

Back End

Front-end and back-end are terms used to characterize program interfacesand services relative to the initial user of these interfaces andservices. (The “user” may be a human being or a program). A “front-end”application is one that application users interact with directly. A“back-end” application or program serves indirectly in support of thefront-end services, usually by being closer to the required resource orhaving the capability to communicate with the required resource. Theback-end application may interact directly with the front-end or,perhaps more typically, is a program called from an intermediate programthat mediates front-end and back-end activities.

Browser or Browser System

A browser system is a program that provides a way to look at, read andhear all the information on the World Wide Web. A browser typicallyinterprets hypertext links and allows the user to view sites andnavigate from one Internet node to another. A brief overview of webbrowsers and their interactions within the World Wide Web are set forthin U.S. Pat. No. 5,774,670, the entirety of which is herein incorporatedby reference.

Browsing

A process that can describe moving between page web files associatedwith the marketing system web site of the present invention. “Browsing”can also refer to browsing the World Wide Web, which is described inU.S. Pat. No. 5,774,670, the entirety of which is herein incorporated byreference.

Bulletin Board System (BBS)

A bulletin board system is a computer that can be reached by computermodem dialing (and, in some cases, by Telnet) for the purpose of sharingor exchanging messages or other files. Some BBS's are devoted tospecific interests; others offer a more general service.

C++

C++ is an object-oriented programming language that is now generallyviewed as the best language for creating large-scale applicationprograms. C++ is a superset of the C language.

CGI—Common Gateway Interface

A small program written in a script language such as Perl that functionsas the glue between HTML pages and other programs on the Web server. Forexample, a CGI script would allow search data entered on a Web page tobe sent to the DBMS (database management system). It would also formatthe results of that search onto an HTML page, which is sent back to theuser.

Client/Server

An architecture in which the client machine (personal computer orworkstation) is the requesting machine and the server is the supplyingmachine, both of which are connected via a local area network (LAN) orwide area network (WAN). Since the early 1990s, the client/serverarchitecture has been used to build applications on LANs in contrast tocentralized minicomputers and mainframes with dedicated terminals. Theclient machine contains the user interface and, in terms of the presentinvention, preferably performs none or very little of the applicationprocessing. A client machine may also be referred to herein as a “usermachine” or “user.” Servers can be high-speed microcomputers,minicomputers or even mainframes. A database server maintains thedatabases and processes requests from the client machine to extract datafrom, or update, the database. An application server may provideadditional business processing for the client machine.

COM+

COM+ is an extension of COM (Component Object Model), Microsoft'sstrategic building block approach for developing applications. COM+ isboth an object-oriented programming architecture and a set of operatingsystem services. It adds to COM a new set of system services forapplication components while they are running, such as notifying them ofsignificant events or ensuring they are authorized to run. COM+ isintended to provide a model that makes it relatively easy to createbusiness applications that work well with the Microsoft TransactionServer (MTS) in a Windows® NT system.

Cookie

A cookie is a special text file that a Web site puts on a hard disk of auser machine accessing the web site so that it can remember somethingabout the user at a later time. Typically, a cookie records a user'spreferences when using a particular site. Using the Web's HypertextTransfer Protocol (HTTP), each request for a Web page is independent ofall other requests. For this reason, the Web page server has no memoryof what pages it has sent to a user previously or anything about theuser's previous visits. A cookie is a mechanism that allows the serverto store its own file about a user on the user's own computer. The fileis stored in a subdirectory of the browser directory. The cookiesubdirectory will contain a cookie file for each Web site the user hasbeen to that uses cookies. An exemplary specification for cookies can befound at http://www.netscape.com/newsref/std/cookie—spec.html, which isherein incorporated by reference in its entirety. A detailed descriptionof cookies, and the storage of state information, is contained in U.S.Pat. No. 5,774,670, the entirety of which is herein incorporated byreference.

Data Warehouse

A data warehouse is a central repository for all or significant parts ofthe data that an enterprise's various business systems collect.Typically, a data warehouse is housed on an enterprise mainframe server.Data from various online transaction processing (OLTP) applications andother sources is selectively extracted and organized on the datawarehouse database for use by analytical applications and user queries.Data warehousing emphasizes the capture of data from diverse sources foruseful analysis and access, but does not generally start from thepoint-of-view of the end user or knowledge worker who may need access tospecialized, sometimes local databases.

Database

A set of related files that is created and managed by a databasemanagement system (DBMS). DBMSs can manage any form of data includingtext, images, sound and video. The software determines database and filestructures.

Demilitarized Zone (DMZ)

In computer networks, a DMZ is a computer host or small network insertedas a “neutral zone” between a company's private network and an outsidepublic network. It prevents outside users from getting direct access toa server that has company data. A DMZ is an optional and more secureapproach to a firewall and can also function as a proxy server as well.

Distributed Component Object Model (DCOM)

DCOM is a set of Microsoft concepts and program interfaces in whichclient program objects can request services from server program objectson other computers in a network. The Component Object Model (COM)provides a set of interfaces allowing clients and servers to communicatewithin the same computer (running a Windows® 95, 98, or NT system).

DHTML-Dynamic HTML

Specific enhancements to HTML tags that allow Web pages to function morelike regular software. For example, fonts could be changed or imagescould be selected without having to jump to another page. Dynamic HTML(DHTML) is based on the Document Object Model (DOM) interface thatallows HTML tags to be dynamically changed via JavaScript®, a trademarkof Sun Microsystems, Inc., Mountain View, Calif., or some otherscripting language. Netscape® Communicator and Microsoft InternetExplorer 4.0 use different methods to implement DHTML. Netscape® is aregistered trademark of Netscape Communications Corporation, MountainView, Calif.

Digital Subscriber Line (DSL)

A modem technology that increases the digital speed of ordinarytelephone lines by a substantial factor over common V 0.34 (33600 BPS)modems. DSL modems may provide symmetrical or asymmetrical operation.Asymmetrical provides faster downstream speeds and is suited forInternet usage and video on demand, where the heaviest transmissionrequirement is from the provider to the customer.

Direct Access Storage Device (DASD)

DASD is a general term for magnetic disk storage devices and hashistorically been used in the mainframe and minicomputer (mid-rangecomputer) environments. When used, it may also include hard disk drivesfor personal computers. A recent form of DASD is RAID (see below).

Downloading

Downloading is the transmission of a file from one computer system toanother, usually smaller computer system. From the Internet user'spoint-of-view, to download a file is to request it from another computer(or from a Web page on another computer) and to receive it.

Dynamic Link Library (DLL)

An executable program module that performs some function. DLLs are notlaunched directly by users. When needed, they are called for by arunning application and loaded to perform a specific function. DLLs aregenerally written so that their routines are shared by more than oneapplication at the same time.

E-Commerce

E-Commerce is the application of communication and information sharingtools among trading partners to the pursuit of business objectives.Representative types of electronic commerce include, for example,Information access, Shopping services and Virtual enterprises.

Electronic Data Interchange (EDI)

EDI is a standard format for exchanging business data.

Electronic Mail (E-Mail)

E-Mail is the exchange of computer-stored messages by telecommunication.E-Mail messages are usually encoded in ASCII text. However, non-textfiles, such as graphic images and sound files, can be sent asattachments in binary streams. As used herein, E-mail may also bereferred to as an electronic notification.

Encryption

Encryption is the conversion of data into a form, called a cipher, thatcannot be easily intercepted by unauthorized people. Decryption is theprocess of converting encrypted data back into its original form, so itcan be understood. Typically, when an encrypted document arrives at itsdestination, the encrypted document is converted back to its originalform through decryption. The readable document is generally referred toas a “decrypted” document. A basic introduction to encryption anddecryption is described in the text written by Bruce Scheiner entitled“Applied Cryptography: Protocols, Algorithms And Source Code in C,”published by John Wiley & Sons, 1994, the entirety of which is herebyincorporated by reference. Moreover, more detailed descriptions ofsystems and apparatus for accomplishing encryption and decryption incomputer networks are set forth in U.S. Pat. Nos. 5,903,652, 5,850,442,and 5,850,446, the entirety of each of which is hereby incorporated byreference.

ERP-Enterprise Resource Planning

An information system that integrates all manufacturing and relatedapplications for an entire enterprise. An ERP implies the use ofadvanced information technologies, including, but not limited to,Graphical User Interfaces (“GUIs”), Computer Aided Software Engineering(“CASE”) tools, 4GL (fourth-generation programming language),client/server architecture and open systems.

Electronic Retailing

Electronic retailing is the selling of retail goods on the Internet.

Ethernet

A type of Local Area Network (LAN) developed by Xerox, Digital andIntel. It is the most widely used LAN access method. Token Ring is thenext most widely used method. Ethernet is normally a shared media LAN.All stations on the segment share the total bandwidth, which is either10 MBPS (Ethernet), 100 MBPS (Fast Ethernet) or 1000 MBPS (GigabitEthernet). With switched Ethernet, each sender and receiver pair havethe full bandwidth.

Extranet

An extranet is a private network that uses the Internet protocols andthe public telecommunication system to securely share part of abusiness's information or operations with suppliers, merchants,partners, customers, or other businesses. An extranet can be viewed aspart of a company's intranet that is extended to users outside thecompany.

Fourth-Generation Language (4GL)

A computer language that is more advanced than traditional high-levelprogramming languages. Languages for accessing databases are oftendescribed as 4GLs. An exemplary 4GL language statement is “EXTRACT ALLCUSTOMERS WHERE “PREVIOUS PURCHASES” TOTAL MORE THAN $1000.” Anotherexample, as in dBase, the command list displays all the records in adata file. In second- and third-generation languages, instructions wouldhave to be written to read each record, test for end of file, place eachitem of data on screen and go back and repeat the operation until thereare no more records to process. First-generation languages are machinelanguages; second-generation languages are machine dependent assemblylanguages; third-generation languages are high-level programminglanguages, such as FORTRAN, COBOL, BASIC, Pascal and C.

Fractional T-1 or T-3 Line

A fractional T-1 or T-3 line is a T-1 or T-3 digital phone line in theNorth American T-carrier system that is leased to a customer at afraction of its data-carrying capacity and at a correspondingly lowercost. A T-1 line contains 24 channels, each with a data transfercapacity of 64 KBPS. The customer can rent any number of the 24channels. The transmission method and speed of transfer remain the same.Overhead bits and framing are still used, but the unrented channelssimply contain no data.

Gigabyte (GB)

A gigabyte is a measure of computer data storage capacity and is“approximately” one billion bytes.

Graphics Interchange Format (GIF)

A popular raster graphics file format developed by CompuServe. Itsupports 8-bit color (256 colors) and is widely used on the Web, becausethe files compress well. GIFs include a color table that includes themost representative 256 colors used. For example, a picture of theforest would include mostly greens. This method provides excellentrealism in an 8-bit image. GIF89 allows one of the colors to be madetransparent and take on the background color of the underlying page orwindow. GIF89a supports animated GIFs, which are sequences of imagesdisplayed one after the other to simulate movement.

Hypertext Markup Language (HTML)

HTML (Hypertext Markup Language) is the set of “markup” symbols or codesinserted in a file intended for display on a World Wide Web browser. Themarkup tells the Web browser how to display a Web page's words andimages for the user.

Hypertext Transfer Protocol (HTTP)

HTTP is the set of rules for exchanging files (text, graphic images,sound, video and other multimedia files) on the World Wide Web. Relativeto the TCP/IP suite of protocols, HTTP is an application protocol. TheWorld Wide Web is based on the concept of “hypertext” and the transfermethod known as HTTP. HTTP is typically designed to run primarily overTCP/IP and uses the standard Internet setup, where a server issues thedata and a client machine or “client browser” displays the data. Oneformat for information transfer is to create documents using HTML page(see above), which are preferably made up of standard text as well asformatting codes which indicate how the page should be displayed. TheWeb client machine, reads these codes in order to display the page. Thehypertext conventions and related functions of the World Wide Web aredescribed in the appendices of U.S. Pat. No. 5,715,314, the entirety ofwhich is herein incorporated by reference.

HTTPS (Secure Hypertext Transfer Protocol)

HTTPS is a Web protocol developed by Netscape® and built into itsbrowser that encrypts and decrypts user page requests as well as thepages that are returned by the Web server. HTTPS uses Netscape's SecureSocket Layer (SSL) as a sublayer under its regular HTTP applicationlayer. SSL can use a 40-bit or 120 bit key size for the streamencryption algorithm.

Hyperlink

On the Web or other hypertext systems, hyperlink is a synonym for bothlink and hypertext link.

Internet Information Server (IIS)

Web server software from Microsoft that runs under Windows® NT. Itsupports Netscape's SSL security protocol and turns an NT-based PC intoa Web site.

Input/Output (I/O)

Transferring data between the CPU and a peripheral device. Everytransfer is an output from one device and input into another.

Integrated Services Digital Network (ISDN)

An international telecommunications standard for transmitting voice,video and data over digital lines running at 64 KBPS. The telephonecompanies commonly use a 64 KBPS channel for digitized, two-way voiceconversations. ISDN service is becoming widely available in the U.S.

Java®

Java®, a registered trademark of Sun Microsystems, Inc., Mountain View,Calif., is a programming language (Sun Microsystems) expressly designedfor use in the distributed environment of the Internet. It was designedto have the “look and feel” of the C++ language, but it is simpler touse than C++ and enforces a completely object-oriented view ofprogramming Java® can be used to create complete applications that mayrun on a single computer or be distributed among servers and clients ina network. It can also be used to build small application modules orapplets for use as part of a Web page. Applets make it possible for aWeb page user to interact with the page.

Java® Scripting Language (Javascript®)

A script language from Sun Microsystems, Inc. that is supported inNetscape® Navigator as of Version 2.0. JavaScript® uses the HTML page asits user interface, whereas Java® can generate a completely custominterface. On the client machine, JavaScript® applets are maintained insource code. On the server, they are compiled into byte code(intermediate language), similar to Java® programs. JavaScript® does nothave the programming overhead of Java®, but can be used in conjunctionwith it. For example, a JavaScript® applet could be used to display adata entry form and validate the input, while a Java® program processesthe information. JavaScript® is also used to tie Java® applets together.

Joint Photographic Experts Group (JPG)

A type of graphic compression. Good quality for photographs.

Legacy Systems

Mainframe and/or minicomputers typically supporting character based userinterfaces.

Logical Data Model (LDM)

Representation of those entities, objects, relationships and attributes,which are used to construct a physical database model.

Logon/Login

In general computer usage, logon is the procedure used to get access toan operating system or application, usually in a remote computer.Generally, a logon procedure requires that the user have (1) a user IDand (2) a password. Often, the user ID must conform to a limited lengthsuch as eight characters and the password must contain at least onedigit and not match a natural language word. The user ID can be freelyknown and is visible when entered at a keyboard or other input device.The password must be kept secret (and is not displayed as it isentered). A similar procedure, called registration, is required to entersome Web sites.

Message Queuing

In programming, message queuing is a method by which processes (orprogram instances) can exchange or pass data using an interface to asystem-managed queue of messages. Messages can vary in length and beassigned different types or usages. A message queue can be created byone process and used by multiple processes that read and/or writemessages to the queue. For example, a server process can read and writemessages from and to a message queue created for client processes. Themessage type can be used to associate a message with a particular clientprocess even though all messages are on the same queue.

Microsoft Transaction Server (MTS)

The Microsoft Transaction Server is a program that runs on an Internetor other network server and manages application and database transactionrequests on behalf of a client computer user. The Transaction Serverscreens the user and client computer from having to formulate requestsfor unfamiliar databases and, if necessary, forwards the requests todatabase servers. It also manages security, connection to other serversand transaction integrity.

NetPerceptions

NetPerceptions is an application that is bundled with Vignette, acontent management system, that can be used for Web site ad tracking. Italso offers E-Commerce merchandizing solutions for cross selling, upselling and increasing Web shopper loyalty.

Network

In information technology, a network is a series of points or nodesinterconnected by communication paths. Networks can interconnect withother networks and contain sub networks. The most common topologies orgeneral configurations of networks include the bus, star and ringtopologies. Networks can also be characterized in terms of spatialdistance as local area networks (LANs), metropolitan area networks(MANs) and wide area networks (WANs).

NT File System (NTFS)

NTFS is the system that the Windows® NT operating system uses forstoring and retrieving files on a hard disk. NTFS is the Windows® NTequivalent of the Windows® 95/98 FAT (file allocation table) and the IBMOS/2 HPFS (high performance file system).

Open Database Connectivity (ODBC)

A standard or open application programming interface (API) for accessinga database. By using ODBC statements in a program, files in a number ofdifferent databases, including Access, dBase, Excel and Text, can beaccessed. In addition to the ODBC software, a separate module or driveris needed for each database to be accessed.

Peripheral

Any hardware device connected to a computer, such as a monitor,keyboard, printer, disk, tape, graphics tablet, scanner, joy stick,paddle and mouse.

Perl (Practical Extraction Report Language)

A programming language that combines syntax from several UNIX utilitiesand languages. Perl is designed to handle a variety of systemadministrator functions. Because of its comprehensive string handlingcapabilities, it is widely used on Web servers. Stemming from the UNIXworld, Perl has been adapted to other platforms.

Physical Data Model (PDM)

Generation of an actual SQL server database.

Plug-In

An auxiliary program that works with a major software package to enhanceits capability. For example, plug-ins are widely used in image editingprograms such as PhotoShop to add a filter for some special effect.Plug-ins are added to Web browsers such as Netscape® to enable them tosupport new types of content (audio, video, etc.). The term is widelyused for software, but could also be used to refer to a plug-in modulefor hardware.

RAID (Redundant Array of Independent Disks)

RAID is a way of storing the same data in different places (thus,redundantly) on multiple hard disks. By placing data on multiple disks,I/O operations can overlap in a balanced way, improving performance.Since multiple disks increases the mean time between failure (MTBF),storing data redundantly increases fault-tolerance.

Synchronized Multimedia Integration Language (SMIL)

Pronounced “smile”, it is a language for displaying TV-like content onthe Web from the World Wide Web Consortium (“W3C”). It is used tosequence audio, video and graphics elements into a continuous,low-bandwidth stream. SMIL supports hypertext links to background andrelated information or for ordering a product.

TCP/IP (Transmission Control Protocol/Internet Protocol)

TCP/IP (Transmission Control Protocol/Internet Protocol) is the basiccommunication language or protocol of the Internet. It can also be usedas a communications protocol in the private networks called intranetsand in extranets. When a computer is set up with direct access to theInternet, the computer is provided with a copy of the TCP/IP programjust as every other computer that messages are sent to, or informationis received from, also has a copy of TCP/IP.

URL (Uniform Resource Locator)

A URL is the address of a file (resource) accessible on the Internet.The type of resource depends on the Internet application protocol. Usingthe World Wide Web's protocol, the Hypertext Transfer Protocol (HTTP),the resource can be an HTML page, an image file, a program such as a CGIapplication or Java® applet, or any other file supported by HTTP. TheURL contains the name of the protocol required to access the resource, adomain name that identifies a specific computer on the Internet and ahierarchical description of a file location on the computer. Additionaldescriptions of URLs can be found in U.S. Pat. No. 5,774,670 and theappendices to U.S. Pat. No. 5,715,314, the entirety of each of which isherein incorporated by reference.

VBScript

VBScript is an interpreted script language from Microsoft.

Vignette

Vignette Enterprise Solutions is a content management system thatincludes two platforms: Vignette StoryServer 4 and Vignette SyndicationServer Plus, a comprehensive set of tools (Production Center, BusinessCenter and Development Center).

Visual Basic

Visual Basic is a programming environment from Microsoft in which aprogrammer uses a graphical user interface to choose and modifypre-selected chunks of code written in the BASIC programming language.

VRML Virtual Reality Modeling Language

A 3-D graphics language used on the Web. After downloading a VRML page,its contents can be viewed, rotated and manipulated. Simulated rooms canbe “walked into.” The VRML viewer is launched from within the Webbrowser.

Webmaster

A Webmaster is a person who either: creates and manages the informationcontent (words and pictures) and organization of a Web site, manages thecomputer server and technical programming aspects of a Web site; or doesboth.

Web Site

A Web site is a related collection of Web files that typically includes,but is not limited to, a beginning file called a home page.

Windows® NT

Windows® NT is the Microsoft Windows® personal computer operating systemdesigned for users and businesses needing advanced capability. Windows®NT is actually a combination of two products: Microsoft NT Workstationand Microsoft NT Server.

World Wide Web

The World Wide Web is defined as all of the resources and users on theInternet that are using the Hypertext Transport Protocol (HTTP).

eXtensible Markup Language

A subset of the SGML document language designed for use on the Web andsanctioned by the World Wide Web Consortium (W3C). It provides moreflexibility for designing Web pages than HTML, which itself is adocument type of SGML. Whereas HTML uses a fixed set of tags (codes) todescribe the pages, XML maintains the flexible meta-languagecharacteristic of SGML by defining the codes that will be used in eachdocument.

Overview

The present invention is directed to a system and method for providingcomplete electronic commerce (“E-Commerce”) transactions and solutionswithin a marketing system for a marketing company's products via anetwork generally accessible by the public, such as the World Wide Web.The present invention includes facilities for signing up or registeringnew customers with the marketing system and recruiting, training andsupporting new Independent Business Owners (IBOs) through an interactiveonline process. In another aspect, the present invention relates to thecombination of a marketing business with a membership buying opportunityusing both electronic commerce and face-to-face transactions.Particularly, the present invention is directed to a system and methodfor combining a marketing business with a membership buying club.Independent Business Owners participating in the marketing plan canintroduce customers to a membership buying opportunity and earn bonusesor commissions, which may alternatively be referred to as “income,”based on the purchases by those customers. Members in the buyingopportunity can consume products or, at their option, qualify to becomeIndependent Business Owners. The categories of IBO, Member, Member Plus,and Client will be described in more detail below.

As used herein, a “marketing company” denotes a company that employs adistribution force of independent distributors. Such distributors can becompensated in a variety of ways including, but not limited to,multilevel compensation, which includes compensation on sales madedirectly by the distributor as well as sales made by others, commissionson sales made only directly by the distributor, or other suitable typesof commissions or compensation.

As used herein, “bonus” can mean compensation or income paid to an IBObased upon, but not limited to, the following: sales of marketing systemproducts and services to the IBO's personal group; sales of marketingsystem products and services to the IBO; and sales of marketing systemproducts and services by the IBO and by the personal group; and sales ofmarketing system products and services to the IBO. In another embodimentof the present invention, the bonus may include compensation paid to anIBO based on the volume of product sales to that IBO and IBOs personallysponsored by that IBO and Members and customers serviced by that IBO. Asused herein, “group” is used to, for example, describe all IBOs who havebeen personally sponsored by an IBO in addition to all IBOs sponsored bythose people and so on. “Sponsoring” is the act of introducing others tothe marketing company's business opportunity and having them sign up as,for example, but not limited to, a Member or a Member Plus.

Marketing system products and services can include, for example, allproducts and services available for purchase through the marketingsystem of the present invention. In one embodiment, marketing systemproducts and services are made available from a marketing companyassociated with the marketing system. In another embodiment, marketingsystem products and services are made available from a merchant partnerassociated with the marketing system. In another embodiment, marketingsystem products and services are made available from both the marketingcompany and the merchant partner.

The present invention is also directed to a system and method foroffering a single marketing distribution system for the products ofseveral different sellers, which preferably include a marketing companyand merchant partners, all distributed through the same independentsales network but with different levels and structures of compensationfor different product lines. The present invention preferably allowsshoppers to shop for and buy products from different sources, includinga marketing company and merchant partners, preferably, in a singletransaction. It allows Independent Business Owners to earn income undera single marketing plan for selling a variety of different product linesin combinations selected by each individual Independent Business Owner.

The present invention is also directed to providing Independent BusinessOwners in a marketing business with a “Virtual Office” feature thatprovides information vital to the operation of their business.Preferably, the Virtual Office feature is embodied in an office page webfile associated with the web site of the present invention. Theinformation provided includes, but is not limited to, information ondifferent product offerings and compensation systems, training,financial information, marketing support, customer profiles, and otherinformation. The information can also include information relating tosales of marketing system products and services to a personal group andsales of marketing system products and services by the personal group.The personal group preferably comprises at least one individual selectedfrom the group consisting of a registered Client, Member, Member Plus,and an IBO. Alternatively, the information can include sales ofmarketing system products and services to the IBO and sales of marketingsystem products and services by the IBO. Additionally, the office pageweb file allows an IBO to view the total individual point value, totalindividual business volume, the IBO's total point value, and the IBO'stotal business volume. The total point values and total business volumesare calculated from the individual point values and business volumesassigned to marketing system products and services.

The present invention is also directed to a system and method forproviding different levels of access to information about products, and“Virtual Office” functions to Independent Business Owners, so that eachparticipant receives information and marketing materials targeted totheir individual preferences and business situations.

The present invention is also directed to a system and method forfacilitating an on-line shopping and rewards program through a network,the network comprising at least one server computer capable ofcommunicating with a browser system located at a remote client computer.The present invention includes establishing an interactive onlineregistration process between the client browser system and the servercomputer so that an individual may register with the marketing system asa Client, a Member, or a Member Plus, wherein a Client is not eligibleto earn compensation and is eligible to buy products at a Client price,wherein the Client price is preferably less than or equal to a retailprice, wherein a Member is eligible to buy products at a Member price,wherein the Member Price is preferably less than or equal to the Clientprice, and wherein the Member is not eligible to earn compensation, andwherein a Member Plus is eligible to buy products at a Member Plusprice, wherein the Member Plus price is preferably less than or equal tothe Member price or the Client price, and wherein a Member Plusqualifies to earn compensation by satisfying a sales qualification leveland thereby qualifying as an IBO, and wherein each IBO is eligible tobuy products at an IBO price, wherein the IBO price is preferably lessthan or equal to the Member Plus price or the Member price, and whereinthe IBO is eligible to earn compensation.

The present invention further includes maintaining a catalog comprisingmarketing system products and services on the server computer.Additionally, the present invention includes: maintaining a rewardsdatabase on the server computer for storing reward points correspondingto a registered Member; assigning a rewards value to the marketingsystem products and services and storing the rewards value in thecatalog; assigning a redemption value to the marketing system productsand services and storing the redemption value in the catalog; providingon-line access to the catalog to a registered Member via an on-lineorder form; allowing the registered Member to submit an order formarketing system products and services via the on-line order form;providing on-line access to the catalog to a registered Member via anon-line redemption form; allowing the registered Member to submit arewards exchange request for marketing system products and services viathe on-line redemption form; and subtracting from the rewards database aredemption value corresponding to the marketing system products andservices chosen by the registered Member.

System and Method of the Present Invention

An exemplary embodiment of the present invention is shown generally inFIG. 1.

As can be seen from FIG. 1, the present invention preferably includes adirect link between a marketing company 100 and an E-Commerce (E-Comm)Web Site 102. The E-Commerce Web Site 102 is preferably served up ordisplayed to shoppers or users differently, depending upon themembership or registration level or attributes of the shopper or user.In one embodiment of the present invention, one of the registeredClient, Member, or Member Plus does not have access to all marketingsystem products and services. In a further embodiment of the presentinvention, only a registered IBO has access to all marketing systemproducts and services. In an alternate embodiment, a different group ofmarketing system products and services is preferably presented to eachof the registered Client, Member, Member Plus, and IBO.

The invention further preferably includes, for example, but is notlimited to a shopping page Web file, which includes the following: “MyHealth” (Health 1300), “My Home” (Home 1210) and “My Self” (Self 1400).It should be apparent to one of ordinary skill in the art that each ofthe Health 1300, Home 1210, and Self 1400 may represent individualshopping page web files associated with the E-Commerce Web Site 102. Thepresent invention is not limited to three such shopping page web files,and other shopping page web files could be included. Such other shoppingpage web files could be directed to other types of products, such as,but not limited to, travel-related products and sporting equipment.

Additionally, the marketing system's E-Commerce registered users canvisit the “Member Perks” 1600 page web file and explore the number offeatures described herein available to Members. Preferably, an on-lineform associated with the member perks page web file is supplied to aregistered Client, Member, Member Plus, and IBO. The registered Client,Member, Member Plus, and IBO enters personal information onto theon-line form. Personal information is preferably stored on a servercomputer, as will be described in more detail below, for example, withrespect to FIGS. 16-19 (“My Business”) and thereafter. This personalinformation can be used to customize their E-Commerce environment. Asused herein, “Member Perks” and “Member Benefits” or “Member Services”may be used interchangeably and should be construed by one havingordinary skill in the art as analogous terms.

In a preferred embodiment of the present invention, IBOs and MembersPlus, which will be described in more detail below, can visit a “VirtualOffice” 2100, or office page web file, to find information needed toefficiently run their E-Commerce business. An “Income Options” 140 site,or income options page web file, provides an area where a web shoppercan find out more information about the E-Commerce business opportunityand can quickly and easily execute membership registration. In apreferred embodiment, the income options page web file comprises amultimedia presentation and information relating to the marketingsystem. such as through a slide-show presentation. Additionally, in thepreferred embodiment, only a registered Client, Member, Member Plus, andIBO may view the multimedia presentation via the income options page webfile.

As shown, the web site also provides links to affiliates 1500 (Merchants1, 2, and 3) or merchant partner page web files of the marketingcompany, and new business ventures of the marketing company (NBV 1 and2) Web sites 150. Each of these will be described in more detail below.In addition, in one embodiment, the web site also provides links to a“Store for More” 2950, which can comprise all marketing system productsand services, or a subset thereof, and a customer service page web file2300, which will be described in more detail below.

In addition, there preferably is a link to a site search page 155 fromthe primary navigational menu. Site search page 155 allows a user toenter common terms and/or phrases and attempts to locate those terms orphrases within the E-Commerce web site.

The E-Commerce web site 102 as embodied in the present invention hasseveral primary audiences, each with different informational needs. Thesite provides IBOs with a new description for the marketing company'sbusiness and its objectives. Moreover, prospects with only a slightinterest in the marketing plan can be signed up as Clients or Members.Web prospects who simply want to make some additional money can bereferred to the site and signed up as a Member Plus. Additionally, userswho are not registered with the marketing system, referred to herein asanonymous users, site visitors, surfers, or the like, can navigatethrough non-restricted portions of the web site and can select items forpurchase. In a preferred embodiment, these anonymous users must registerprior to purchasing the items selected for purchase. Additionally, thesite provides the facilities for registered E-Commerce IBOs and MembersPlus to manage and monitor their business, via the “Virtual Office”section of the site.

Prospective shopping leads typically and preferably come from Clients,Members, Members Plus, and/or Independent Business Owners. However,potential leads also may come from the marketing company, merchantpartners, or other merchandising sources, or any other suitable source.A description follows of exemplary types of audience or participationcategories and the exemplary benefits and services provided by thepresent invention to these audience members or participation categories.

Client

A Client describes a participation category in which an individualregisters with the marketing system. A Client may purchase products orservices directly from a registered IBO and be serviced by the IBO. Inan alternative embodiment, the Client may purchase products or servicesdirectly from a registered Member Plus and be serviced by the MemberPlus. In an alternative embodiment, the Client may purchase products andservices directly from a marketing company. The Client preferablypurchases products or services at a Client price, which is preferablyless than or equal to a retail price. An Independent Business Owner,Member Plus, or in some cases another Member typically refer Clients tothe E-Commerce Web site 102 embodied in the present invention.

In one embodiment, Clients purchase products from the marketing companyat retail prices. A retail price is preferably greater than an IBOprice, which is a price at which IBOs buy products and services from themarketing company. A Client is preferably not eligible to purchasemarketing system products or services at an IBO price, wherein the IBOprice is preferably less than the retail price. In other words, byanalogy, a Client preferably purchase products or services at a retailprice from, for example, a retail department store, whereas an IBOpurchases products or services from, for example, a distributionwarehouse at a wholesale price. A Client preferably has exposure to asubset of the total core product and catalog lines for browsing, but maybe shown all products if the SKU or identification number, or the exactbrand name is known for a particular product and is searched for.Moreover, a Client is preferably not eligible to earn compensation orbonus income. The site provides an amusing and efficient place forClients to shop, as product favorites may be continually target-marketedto the Client based upon their buying habits. Further, a Client ispreferably exposed to specials and other deals to entice them to becomeMembers of the marketing system.

Member

The E-Commerce Web site is designed primarily, but not exclusively, forMembers. A Member describes a participation category in which anindividual registers with the marketing system. A Member is preferably adiscount buyer with membership benefits. An Independent Business Owner,Member Plus, or in some cases another Member, typically refers Membersto the E-Commerce Web site. A principal feature of a Member is that bypaying an annual fee, the Member is entitled to purchase products andservices for their own consumption directly from the marketing companyat a price equal to or greater than the price paid by IndependentBusiness Owners. This price is usually less than the retail price paidby Clients. The marketing company also offers direct marketingpromotions targeted at Members. Members are also able to sign up onlinevia the E-Commerce site or in person. Moreover, Members can placestanding and recurring orders and may purchase products from an IBO orMember Plus.

Another feature of membership is complete access to the My Business areathat provides benefits beyond those offered to clients. Personalizedbenefits, such as news, weather, sports, e-mail, as well as theE-Commerce Rewards Program, which is preferably designed exclusively forMembers, are available.

The Member, however, is not entitled to a performance bonus nor is theMember authorized to recruit or sponsor other Members. Moreover, Membersare not encouraged or authorized to resell products from the marketingcompany.

Member Plus

A Member Plus describes a participation category in which an individualregisters with the marketing system. An Independent Business Owner oranother Member Plus typically may refer a Member Plus to the E-CommerceWeb site. A Member Plus is a person that is interested in purchasingproducts from the marketing company at Independent Business Owner pricesas well as becoming an E-Commerce Independent Business Owner. A MemberPlus is entitled to purchase products and services for their ownconsumption directly from the marketing company at a Member Plus pricewhich may be the same as or less than a Member price. Some products andservices available to IBOs are also available to Members Plus asdescribed below. Members Plus are not entitled to a performance bonus.They are however, encouraged and authorized to resell the company'sproducts as well as to generate new sales to direct-buying consumerssuch as Members. Moreover, a Member Plus can place standing andrecurring orders for products in both eaches and bulk and can sponsorothers into the marketing system.

In one embodiment, the Member Plus purchases an E-Commerce Business Kit,which gives them the ability to recruit, retail and receive a bonus, andpays a fee. This fee entitles the Member Plus to purchase products atIndependent Business Owner prices. In a preferred embodiment, theE-Commerce Business Kit comprises products, videos, and literature usedby the Member Plus to build and grow their independent business.

Moreover, a Member Plus has complete access to the Virtual Office site2100 which is designed to provide tools to help manage and monitor anE-Commerce business. Access to personalized shopper information,Web-based e-mail, and great deals also are available to the Member Plusvia the E-Commerce site. All point value/business volume point (PV/BV)(described in more detail below) that the Member Plus accumulates goesto the IBO until such time a performance bonus level has been achieved.The Member Plus qualifies as an Independent Business Owner uponachieving the specified performance bonus level.

Independent Business Owner

An IBO describes a participation category in which a registeredindividual participates in the marketing system. Alternatively, an IBOmay describe an individual interested in earning income from the sale ofproducts from the marketing company, although the IBO will also beentitled to purchase products for his/her own consumption. An IBO hasthe ability to recruit, retail, and receive a bonus, collect PV/BV, andparticipate in sales incentive programs. An IBO can purchase allproducts from the core product and catalog lines at the IBO price, whichis preferably less then a retail price established for the products.

An Independent Business Owner can place standing and recurring ordersfor products in both “eaches” and cases. As used herein, “eaches” refersto purchasing products in single quantities rather than case quantities.Cases can refer to a group of products composed of units of products. Inone embodiment, there is an additional charge when ordering products asan “each” compared to the unit cost of the item when ordered by thecase. In addition, an IBO is entitled and encouraged to resell productsto end-user consumers as well as to generate sales by the marketingcompany to such end-user consumers, including Members. Each IBO isentitled to charge any markup he or she chooses for products he or sheresells.

To qualify to earn bonus income, each IBO must preferably generate atleast 50PV of sales in a month to end-user consumers, either Members orindividuals who are neither Members nor IBOs. Personal consumption by anIBO preferably does not count toward this qualification. It should beunderstood by one of ordinary skill in the art, however, that thepersonal consumption by an IBO could count toward the qualification butit is preferred that it does not. Each IBO thus qualified is entitled toearn a performance bonus based on the IBO's own purchases, the purchasesof his or her personal group, sales made to/by the IBO, sales made to/bythe personal group. These sales may include sales made to individualsoutside the marketing system, such as neighbors. Each IBO is entitled,but not required, to sponsor other IBOs and to introduce new Members.

In addition, the IBO has complete access to the Virtual Office site 2100to provide tools to help manage and monitor their E-Commerce business.Access to personalized information such as PV/BV, Web-based e-mail, aswell as access to great merchandizing offers, is also provided to theIBO.

In one embodiment, the participation categories of the present inventioncan comprise IBOs, Members, Members Plus, and Clients. In an alternativeembodiment, the participation categories of the present invention cancomprise IBOs, Members, and Clients. It should be understood by a personhaving ordinary skill in the art that the present invention is notlimited to a particular selection of participation categories and othercategories with varying benefits, privileges, and characteristics couldbe used within the scope of the invention.

Referring now to FIG. 2, there is shown an exemplary embodiment of thepresent invention. According to the present invention, it is preferredthat a company's products and/or services are marketed and sold tocustomers (who may include, but is not limited to, Clients, Members,Members Plus, and IBOs) using an independent network of distributors inconjunction with direct retailing to the customer. As will be describedin more detail below, each distributor within the distribution force maybe compensated in a variety of ways including, but not limited to,multilevel compensation, which includes compensation on sales madedirectly by the distributor as well as sales made by others, commissionsor retail markup on sales made only directly by the distributor, orother suitable types of commissions or compensation. Each distributor ispreferably an Independent Business Owner (IBO), whose individual successdepends upon that IBO's retailing efforts as well as the retailingefforts of those sponsored by the IBO in accordance with the presentinvention.

As shown in FIG. 2, the present invention preferably comprises fourdifferent participation levels or categories within the marketingcompany's 100 distribution system of the preferred embodiment (e.g.,Client 40, Member 30, Members Plus 20, and IBO 10). The solid arrows inFIG. 2 represent the exemplary methods by which products and/or servicesmay be sold in accordance with an exemplary embodiment of the presentinvention. The broken lines in FIG. 2 represent the relationship betweenthe various levels within a particular IBO's 10 personally sponsoredgroup. Each of these exemplary methods and relationships will bedescribed in more detail below.

As noted above, a “Client” 40 is preferably a retail customer who maypurchase products and/or services directly from the marketing company.Alternatively, Client 40 may purchase products and/or services from anIBO 10 or Member Plus 20 at a price established by the IBO 10 or MemberPlus 20. The price established is preferably higher than the price paidby the IBO 10 (“the IBO price”), however, the price charged to Client 40is preferably at the discretion of IBO 10 or Member Plus 20. Client 40preferably purchases products at retail prices, wherein the retailprice, which is set by IBO 10 or Member Plus 20, is preferably higherthan the IBO price. Client 40 may also have exposure only to a subset ofthe total core product and catalog lines. Clients 40 may be personallyreferred by IBO 10 or Member Plus 20. Unsolicited referrals will bepreferably be offered Client 40 status and assigned to the appropriateIBO 10 as will be described below. Clients 40 may be serviced eitherdirectly by IBO 10 or Members Plus 20 or alternatively may be servicedby marketing company 100 on behalf of IBO 10 or Member Plus 20, or amerchant partner.

A “Member” 30, by paying an annual fee, is preferably entitled topurchase products and/or services for their own consumption directlyfrom the marketing company at a price equal to or greater than the pricepaid by Independent Business Owners (IBO's 10). Alternatively, Member 30may purchase products and/or services from an IBO 10 or Member Plus 20.In a preferred embodiment, the price paid by Member 30 is less than theprice paid by Client 40. The marketing company 100 may also offer directmarketing promotions targeted at Members 30. Member 30, however, ispreferably not entitled to a performance bonus or commission, nor isMember 30 authorized to recruit or sponsor other Members 30. Moreover,Members 30 are not encouraged or authorized to resell products from themarketing company 100. Members 30, however, who refer other Members 30will preferably receive referral incentives.

A “Member Plus” 20 is an individual who indicates an intention ofbecoming an IBO 10 but has not generated the requisite sales volume toend-user consumers in order to qualify. Member Plus 20 is interested inpurchasing products from the marketing company 100 at IBO 10 prices, aswell as in becoming an IBO 10. Member Plus 20 may also be entitled topurchase products and services for their own consumption directly fromthe marketing company 100 at the same prices as Members 30. Variousproducts and services which are available to IBO's 10, but not toMembers 30, may also be available to Members Plus 20. Members Plus 20are preferably not entitled to a performance bonus or commission. Inorder to earn a bonus or commission, Member Plus 20 must first qualifyas an IBO 10. Member Plus 20 transitions to IBO 10 by qualifying to earnbonus income. Members Plus 20 are encouraged and authorized to resellthe company's products, as well as to generate new sales todirect-buying consumers such as Members 30 and Clients 40. Moreover,Members Plus 20 are authorized to recruit or sponsor other Members 30into the organization.

In one embodiment of the present invention, upon notification of theirintent to become an IBO 10, a Member 30 transitions to a Member Plus 20by paying a fee and purchasing a Business Kit, which gives them theright to recruit and retail. The fee entitles Member Plus 20 to purchaseproducts at IBO 10 prices. If Member Plus 20 fails to qualify as an IBO10 within a stated period of time, for example, but not limited to, twoyears, Member Plus 20 shall preferably automatically revert to Member 30status.

An Independent Business Owner (IBO 10) is an individual interested inearning income, which includes, but is not limited to, performancebonuses and commissions, from the sale of products from the marketingcompany. In addition, IBO 10 is also entitled to purchase products forhis/her own consumption. IBO 10 may also be described as a Member Plus20 who has received a Performance Bonus and therefore has qualified tobecome an IBO 10. BO 10 has the ability to recruit, retail, and receivea bonus. IBO 10 can purchase all products from the core product andcatalog lines at the IBO 10 pricing level. IBO 10 can place standing andrecurring orders for products in both unit and lot quantities. Moreover,IBO 10 is entitled and encouraged to resell products to end-userconsumers as well as to generate direct sales by marketing company 100to such end-user consumers, including Members 30, Members Plus 20, andClients 10, and even to individuals who are not registered with themarketing company, such as neighbors of IBO 10. Each IBO 10 is entitledto charge any markup he or she chooses for products he or she resells atretail prices.

It is preferred that IBO 10 can earn bonus credit not only for sales toMembers 30, Members Plus 20, and/or Clients 40 through IBO's 10distribution network, but also for sales made directly by marketingcompany 100 to a customer that do not involve a resale by IBO 10. Forexample, IBO 10 may be authorized to earn bonuses from the direct saleof a particular product from marketing company 100 to the end user.Under such a system, IBO 10 earns a bonus payment from marketing company100 based on the customer's purchases.

In order to qualify for bonuses from the direct sale of a product fromthe marketing company 100 to a customer who is not in the IBO's 10direct line of sponsorship, an assignment of the customer to aparticular IBO 10 must be established. In a preferred embodiment of thepresent invention, the customer is assigned to a particular IBO 10 basedon one or more criteria, preferably to choose from a select group ofIBO's 10. Such criteria can include, but is not limited to, thefollowing: 1) The IBO is a Direct Fulfillment or Founders Direct IBO. ADirect Fulfillment IBO is one who preferably utilizes the company'sdirect shipment method by which products are drop-shipped directly toeach Client, Member, Member Plus, or IBO, rather than being deliveredexclusively through a Platinum IBO (an IBO who succeeds in sponsoring apersonal group that generates a prescribed volume of business, forexample, $15,000 per month, in 6 months of any fiscal year, which willbe described in more detail below). A Founders Direct IBO is an IBO thathas achieved a particularly consistent high level of business activityas an IBO; 2) The IBO is active, or maintains a specified level ofactivity; or 3) The IBO is in the geographic proximity to the Clientbased on postal or zip code.

In the preferred embodiment, the Client may then be given the IBO'scontact information, with an option to indicate if the Client wishes theIBO to contact them. Otherwise, the entire assignment process ispreferably transparent from the Client's perspective, and the particularIBO 10 only sees the volume associated with the direct sales to theClient.

In order to transition from Member Plus 20 to IBO 10, as noted above,each Member Plus 20 must qualify as an IBO 10 by earning a bonus income.To qualify to earn bonus income, each IBO 10 must preferably generate atleast 50 PV of sales in a month to end-user consumers. Preferably, allproducts and services sold to end users are assigned two sets ofnumbers: Point Value (PV), which is used to determine the PerformanceBonus bracket; and Business Volume (BV), which is a dollar figureestablished for each product which is totaled monthly to representmonthly sales. Alternately, IBO 10 can qualify by generating a specifiedlevel of sales to 10 different customers, including Members 30 and/orClients 40. Personal consumption by IBO 10 preferably does not counttowards this qualification. Each IBO 10 thus qualified is entitled toearn a performance bonus based on the IBO's 10 own purchases and thepurchases of his or her personal group, plus the purchases of Members 30introduced into the business by the IBO 10. Each IBO 10 is entitled, butnot required, to sponsor other IBO's 10 and to introduce new Members 30.This is the preferred method by which IBO 10 may grow his personal groupand thus his personal business. An exemplary personal group is shown inFIG. 3.

As can be seen in FIG. 3, an IBO's 10 personal group can comprisenumerous subgroups which are linked to the original IBO 10 throughvarious forms of sponsorship. One exemplary subgroup consists of theoriginal IBO 10, a second sponsored IBO 312, Member Plus 322, Member332, and Client 342. In an alternate subgroup, original IBO 10 sponsorsMember Plus 328, who sponsors both Member 338 and second IBO 318.Likewise, Member 338 refers Client 348. Thus, it should be apparent toone of ordinary skill in the art that an IBO's 10 personal group maycontain numerous subgroups, each of which can vary in the number andrelationships between the different participation levels.

Moreover, a “Line of Sponsorhip” or “LOS” refers to an IBO's directheritage or “ancestry” in the marketing company business. In other wordsthe LOS refers to an IBO's sponsor, the IBO's sponsor's sponsor, and soon. An exemplary LOS is shown in FIG. 3 with reference, for example, toIBO 10, IBO 312 and IBO 317. It can be said that the line of sponsorshipis the linkage between all IBOs in a specific organization, similar to afamily tree. In addition, IBO 10 may refer to IBO 312 and IBO 317 asIBO's 10 “downline.” It should be apparent to one having ordinary skillin the art that such a reference would be to those IBOs sponsored by IBO10. Likewise, IBO 317 may refer to IBO 312 and IBO 10 as IBO's 317“upline,” which would denote those IBOs who have sponsored IBO 317 intothe marketing system.

In another embodiment of the present invention, when IBO 10 sponsors anew IBO 316 and begins to help IBO 316 create a group, that IBO's 316personal group may be generally referred to as, for example, a “leg” inIBO's 10 business organization. An exemplary leg is shown in FIG. 3(e.g., IBO 10, IBO 316, Member Plus 326, and Member 336).

In one embodiment, each of the different levels or membership types(Client, Member, Member Plus, and IBO) does not have complete access toall products and product lines. In another embodiment, only IBO's havecomplete access to all products and product lines. It is preferred thatthe particular level determines the degree of access to products andproduct lines. In one embodiment, the degree of access increases as thelevel transitions from Client to Member to Member Plus to IBO, and asthe personal group of an IBO grows. In an alternative embodiment, adifferent product mix or group may be offered to persons based on theirparticular participation level through the use of, for example, but notlimited to, product promotions. In an alternative embodiment, a productmix may be customized to tailor to different customers or groups ofcustomers.

In a further embodiment of the invention, if a product or model number,or identification number, for a particular product is provided by thecustomer, then that customer can purchase that particular product,regardless of the customer's membership level. It should be understoodthat products may be presented to each of the levels through a varietyof medium, including, but not limited to, written, oral, electronic,etc., such as through catalogs, product displays, cassette and videotapes, multi-media devices, and the Internet. However, it should beapparent to one having skill in the art that the present invention isnot limited to any particular presentation method.

Referring now to FIGS. 4 a-4 f, there are shown six exemplary methods bywhich a new customer can become associated or registered with themarketing system of the present invention. As shown in FIG. 4 a, oneembodiment of the present invention allows the customer to sign up as aMember/Member Plus to immediately begin the qualification process tobecoming an IBO. In such an embodiment, the customer bypasses the Clientlevel to register as a Member. Thus, the registered customer immediatelyenjoys the privileges and benefits of the Member Plus as describedherein.

As shown in FIG. 4 b, a second embodiment of the registration process isshown. In this embodiment, the customer may register as a Member andenjoy the accompanying benefits and shopping privileges. The Member maysubsequently at a point later in time choose to register as a MemberPlus at which point the Member will begin the qualification process ofbecoming an IBO.

A third embodiment of the invention is shown in FIG. 4 c. In thisembodiment, a customer initially registers as a Client or retailcustomer serviced by an IBO. Subsequently, the Client may be prompted byanother Member or the IBO to reconsider the benefits of Membership. Ifthe Client chooses, the Client will then register as a Member/MemberPlus to begin the qualification process of becoming an IBO. The Clientcan also subsequently at an independent stage register as aMember/Member Plus to begin the qualification process of being an IBO.

A fourth embodiment of the registration process is shown in FIG. 4 d.This embodiment represents the longest route to becoming an IBO. In suchan embodiment, the customer initially registers as a Client, and thensubsequently, at independent stages, registers as a Member, Member Plus,and IBO respectively. It is preferred that as shown in FIGS. 4 a through4 d, one must register as a Member prior to, or simultaneously with,registering to qualify as a Member Plus/IBO.

A fifth embodiment of the registration process is shown in FIG. 4 e.This embodiment allows the customer to sign up as a Member toimmediately begin the qualification process to becoming an IBO. In suchan embodiment, the customer bypasses the Client level to register as aMember. Thus, the registered customer immediately enjoys the privilegesand benefits of the Member as described herein.

A sixth embodiment of the registration process is shown in FIG. 4 f. Inthis embodiment, a customer initially registers as a Client or retailcustomer serviced by an IBO. Subsequently, the Client may be prompted byanother Member or the IBO to reconsider the benefits of Membership. Ifthe Client chooses, the Client will then register as a Member. TheClient can also subsequently at an independent stage register as aMember to begin the qualification process of becoming an IBO.

In the embodiments shown in FIGS. 4 e and 4 f, a Member is entitled toqualify as an IBO, and there is no separate transition Member Plusparticipation category.

Generally, it is preferred that each Member is initially sponsored intothe marketing system by another IBO who can function as that Member'ssupplier and/or contact with the marketing company. Alternatively, theMember may purchase products directly from the marketing company at thespecified Member price. The Members and Members Plus sponsored by an IBOare referred to as the IBO's “personally sponsored group” or “personalgroup.” IBO's who both generate personal sales to Clients and/or Membersand sponsor a personal group that generates a large volume of productpurchases may receive a substantial income, including, for example,performance bonuses and commissions from the sales. In one embodiment ofthe present invention, the IBO's group volume is used to calculate theIBO's performance bonus. This group volume includes the IBO's personalvolume, personal group volume, and all down-line non-direct (those IBOsnot sponsored directly into the marketing company by the particular IBOin question, or in other words, IBOs sponsored by individuals within theIBO's personal group) IBOs' volume. An IBO's personal group volumepreferably includes, but is not limited to, the IBO's personal volume aswell as the volume generated by IBO's below the 25% bonus level in theIBO's down-line group. Personal volume can include, but is not limitedto, volume from an IBO's own personal orders, PV/BV transfers andmiscellaneous account adjustments. PV/BV transfers can include, but arenot limited to, methods of adjusting PV/BV from one IBO to another.Transfer of such volumes assures bonus checks are paid correctly.

Under the marketing system of the present invention, IBO's earn incomeby generating sales of products and/or services. These sales may be madedirectly to end-users by the IBO or the marketing company, or may bemade by Members Plus or other IBO's within the IBO's personal group. Inaddition, IBO's can profit from retail price increases, or “mark-up” onsales. It is preferred that IBO's are able to set their own retailprices. Moreover, an IBO can earn a monthly performance bonus based onthe combined total volume of products and services moved by the IBO andhis or her personal group. Alternatively, the IBO can also earnperformance bonuses based upon direct sales made by the marketingcompany to customers who are linked to a particular IBO, which will bedescribed in more detail below. It should be apparent to one of ordinaryskill in the art, that the higher the sales volume for a particularmonth, the higher the percentage rate of bonus. An exemplary percentagerate of bonus is in the range of about 1% to about 25%, preferablybetween about 3% and about 25%, although other bonus ranges may be used.An IBO's sales volume will vary depending, in part, upon the salesvolume of others in his personal group and the volume of direct salesfrom the marketing company to end users. If an IBO succeeds insponsoring new IBO's who then generate large volumes of product sales,then the original IBO can earn additional bonus income.

If and when an IBO succeeds in sponsoring a personal group thatgenerates a prescribed volume of business, for example, $15,000 permonth, in 6 months of any fiscal year, that IBO may become a PlatinumIBO. At this point, the Platinum IBO's sponsor no longer receives anyPerformance Bonus from the Platinum IBO's sales volume but may beeligible for other bonuses as described in further detail below. An IBOwho sponsors IBO's can become eligible for higher bonuses and orcommissions.

An exemplary bonus and commission structure is described herein below.It should be understood by one having ordinary skill in the art thatnumerous bonus and/or commission structures may be employed within thepresent invention and the following exemplary embodiments should not beconstrued as limiting the present invention to a particular structure.

An IBO's gross income can be based on immediate income, or a discount,from retail product sales and a Performance Bonus. As used herein,“gross income” preferably means the amount received from retail sales ofproducts and/or services, either directly by the IBO, the marketingcompany, or the IBO's personal group, minus the cost of goods sold, plusthe amount of Performance Bonus retained. Gross income preferably doesnot include deductions for business expenses which will vary accordingto the manner in which each individual IBO operates his or her ownbusiness.

Preferably, all products and services sold to end users are assigned twosets of numbers: Point Value (PV), which is used to determine thePerformance Bonus bracket; and Business Volume (BV), which is a dollarfigure established for each product which is totaled monthly torepresent monthly sales.

In a preferred embodiment, every product is assigned a PV numberincluding marketing company and merchant partner products. In analternate embodiment, only marketing company products are assigned a PVnumber. An IBO's monthly PV total preferably determines the percentageused for Performance Bonus payments in accordance with a PerformanceBonus Schedule.

In a preferred embodiment of the present invention, every product has anestablished BV number, a dollar figure which is multiplied by apercentage (for example, between 3% and 25%) to determine an IBO'smonthly Performance Bonus. This percentage is determined by an IBO's PVtotal. All bonus payments are preferably based on a combination of PVand BV.

As noted above, the amount of Performance Bonus is preferably determinedby a combination of PV and BV. In one embodiment, the PV/BV ratio ismaintained in relation to the Consumer Price Index. ComputingPerformance Bonus on PV emphasizes units sold, not price. As inflationcauses prices to increase, a larger bonus is earned from the same unitssold.

In a preferred embodiment, each product sold is assigned a PV and BV. Inone embodiment, PV is equal to approximately one-half of the IBO costand BV is equal to approximately 1.15 times the IBO cost. The PV and BVvalues may vary from product to product. PV and BV can be earned in avariety of different ways, including, but not limited to the following:an IBO's personal purchases; the purchases of Clients, Members, andother IBO's in the IBO's personal group, including the purchases ofMembers introduced by the IBO; and the purchases of customers directlyfrom the company.

The following Table 1 shows an exemplary Performance Bonus Schedule foruse in the present invention.

TABLE 1 Total Monthly Point Value Performance Bonus 7,500 or more 25% ofBV 6,000 23% 4,000 21% 2,500 18% 1,500 15% 1,000 12%   600  9%   300  6%  100  3%

Under the schedule shown in Table 1, the total Point Value of allmerchandise purchased during a particular month determines thePerformance Bonus percentage for that month. The greater the totalmonthly Point Value, the greater the Performance Bonus Percentage. Inaddition, an annual volume can be calculated based on an IBO's personalvolume plus “pass-up” from non-qualified (less than 25%) legs. Thevolume for non-qualified Members Plus is preferably not included.“Pass-up,” as used herein, generally refers to, for example, the PV/BVcreated by non-qualified IBO volume that continues to be passed up untilcombined volume reaches the 25% Performance Bonus level as noted above.

Having now generally described the bonus and commission structure of thepresent invention, the same will be more readily understood throughreference to the following examples which are provided by way ofillustration, and are not intended to be limiting of the presentinvention.

Example 1

A particular IBO's sponsor group is made up of five Clients and fiveMembers. As a portion of his or her income, the IBO receives the retailmark-up from purchases made by the Clients. Retail mark-up is thedifference between the price normally paid for a particular product andthe price actually charged to the customer. According to the presentinvention, IBO's are not obligated to charge a particular retail price,therefore, each IBO is entitled to independently determine the prices atwhich products will be sold to other IBO's, Clients, Members, MembersPlus, or other customers. In addition, the IBO can receive a PerformanceBonus which is calculated based upon the volume of sales made to thefive Members within the IBO's personal group. The larger the salesvolume, the larger the percentage of Performance Bonus the IBO canreceive.

If each of the five Clients and five Members in the IBO's group purchase$50.00 worth of products in a given month, the total sales volume forthe month is $500.00 ($50.00×10). If suggested retail for the productsis $35.00, then the total retail mark-up for the month is $75.00(assuming the five Clients pay a marked-up price of $50.00; i.e., totalretail mark-up: 5 Clients×$15.00 retail mark-up=$75.00). The individualBV values assigned to the products purchased by the Members is $40.25BV(1.15×$35=$40.25). The individual BV values assigned to the productspurchased by the Clients is $57.50BV (1.15×$50=$57.50). Thus, total BVvalues for all purchases is $488.75BV (5 Clients times the $57.50BVvalue added to 5 Members times the $40.25BV). Using Table 1 above, thePerformance Bonus based upon the total sales volume for the month wouldbe $14.66 (3% of $488.75BV). Accordingly, the IBO's monthly total incomewould be $89.66 ($75.00 plus $14.66). If such a performance level ismaintained for 12 consecutive months, the IBO's total annual grossincome would be $1,076.00.

Example 2

The IBO of Example 1 may increase his or her income by growing thebusiness through sponsorship of any number of others into the business.For example, if the IBO locates three individuals who become IBO's andthey in turn develop 10 customers, each would contribute to the overallvolume on which the original IBO's Performance Bonus is based.

In summary, assume the IBO's personally sponsored group volume generates$1,500.00 per month in total sales (3 groups of 5 Clients and 5 Membersin each group purchasing a total of $500.00 worth of product per group).The IBO's direct customers are continuing to generate $500.00 in saleswith a retail mark-up of $75.00 (see Example 1). Thus, the total groupvolume is $2,000.00 per month ($1,500.00+$500.00), resulting in a NetPerformance Bonus of, for example, $131.97, calculated in a similarmanner as in Example 1. Net Performance Bonus is the difference inPerformance Bonus that is earned on the total sales by the total groupand that earned by each of the sponsored IBO's. Therefore, the IBO'smonthly income, Performance Bonus and retail mark-up, totals $206.97($131.97 (Performance Bonus)+$75.00 (Retail mark-up)). If thisperformance level is maintained by the entire group for 12 consecutivemonths, the IBO's annual income would be $2,483.64.

Example 3

If each of the three personally sponsored IBO's described in Example 2,each personally sponsor two additional IBO's (resulting in sales of 6groups×$500.00=$3,000.00) and the entire group continues to generate thesame sales volume (i.e. $2,000.00), the original IBO's income willfurther increase as described below.

Each of the IBO's personally sponsored IBO's would continue to generate$1,500.00 in sales volume as shown above, while the IBO's directcustomers are continuing to generate $500.00 in sales. In addition, thenewly sponsored groups are each generating $500.00 in sales for a totalof $3,000.00 (6 groups×$500.00/group=$3,000.00). Thus, the entire groupwould have sales totaling $5,000.00. The Net Performance Bonus based onthis volume would be $337.25 (calculated in a similar manner toExample 1) which, in addition to the $75.00 retail mark-up, would resultin monthly income of $412.25. Again, assuming that everyone in the groupmeets these performance levels for 12 consecutive months, the IBO'sannual income is $4,947.00.

Example 4

If each of two additional IBO's described in Example 3, each add onemore IBO and everyone continues to generate the same sales volume, theoriginal IBO's income will increase as described below.

Each of the IBO's personally sponsored IBO's now generates $2,500.00 insales volume (5 groups×$500.00), while the IBO's entire group has salestotaling $8,000.00 (3 groups×$2,500.00 plus the IBO's direct sales of$500.00). The Net Performance Bonus based on this volume is $527.85which, in addition to the $75.00 retail mark-up, results in monthlyincome of $602.85. Again, assuming that everyone in the group meetsthese performance levels for 12 consecutive months, the IBO's annualincome is $7,234.00.

Example 5

If three additional IBO's are added and each build similar organizationsto those described above, then total group volume is $15,500.00 (6groups×$2,500.00 plus the IBO's direct sales of $500.00). The NetPerformance Bonus based on this volume is $1,725.29 which, in additionto the $75.00 retail mark-up, results in monthly income of $1,800.29.Again, assuming that everyone in the group meets these performancelevels for 12 consecutive months, the IBO's annual income is $21,603.00.

Example 6

If three additional IBO's are added to those described above who eachsponsor two IBOs and each of those two sponsor another IBO, the totalgroup volume is $23,000.00 (9 groups×$2,500.00 plus the IBO's directsales of $500.00). The Net Performance Bonus based on this volume wouldbe $2,981.38 which, in addition to the $75.00 retail mark-up, wouldresult in monthly income of $3,056.38. Again, assuming that everyone inthe group could meet these performance levels for 12 consecutive months,the IBO's annual income would be $36,676.00.

Such an organization would also qualify the IBO as a Platinum IBO if theIBO could maintain this group performance for a specified period oftime, for example, but not limited to, 6 months. As a Platinum IBO,there may be additional methods by which income may be earned based uponcertain qualification levels and standards.

As can be seen from the previous examples, as an IBO continues todevelop his or her business, larger amounts of income may be obtainedeither from additional purchases by those within his or her directsponsor group, direct sales made to end user customers, or sales made bythe marketing company to the customers. Various scheduling rates couldbe used for apportioning such bonuses and commissions to the IBO and thepresent invention is not limited to any particular rate or system. Inaddition, the IBO may earn special bonuses or qualify for special statusdepending upon the size of his or her personal group and the total salesgenerated by that group, for example, when the IBO qualifies as aPlatinum IBO.

Membership Chart

Shown in Table 2 below is a summary, including various aspects of theparticipation levels described above, of each audience segment orparticipation level, as well as the exemplary benefits that eachreceives.

TABLE 2 E-Commerce Marketing Segment Company Client (C) Buys product atretail price; Exposure to a subset of product lines; Limited access to“Member Benefits” part of Web Site. Member Buys product at Member (M)price; Exposure to a larger subset of core and catalog product lines;Online signup/renewal; Special targeted marketing offers; Completeaccess to “Member Perks”; and Frequent Buyer Program. Member Buysproduct at IBO price; Plus (M+) Online signup/renewal; Online SupportMaterials; Served up a complete line of core and catalog product lines;Complete access to “Member Benefits”; and Complete access to “VirtualOffice”; and Frequent Buyer Program Independent Buys product at IBOprice; Business Online signup/renewal; Owner Online Support Materials;(IBO) Served up a complete line of core and catalog product lines;Complete access to “Member Benefits” and Frequent Buyer Program Completeaccess to “Virtual Office”; and Collects PV/BV.

Note: All categories (C/M/M+/IBO) may not have complete access to allproducts and product lines. The category in which they operate willdetermine the manner with which they will be presented information.However, in a preferred embodiment of the present invention, if aparticular SKU is provided, any product can be ordered regardless of theshopper membership type.

In a preferred embodiment of the present invention, each different type,model and style of product offered for sale has a unique Stock KeepingUnit (“SKU”) number. Alternately, the SKU number may be referred to asan “identification number” associated with the product or service.

Software Implementation

An exemplary software suite or platform is employed in the presentinvention for carrying out the particular E-Commerce transactions withinthe marketing system and between the participation categories asdescribed herein above and the marketing company. An exemplary softwaresuite for carrying out the present invention preferably includes theitems listed below. However, it should be readily apparent to oneskilled in the art that the present invention is not limited to anyparticular software suite or implementation:

Windows® NT Server 4 with SP 4 applied (NTFS file structure) andcontaining the following exemplary software packages:

NT4 Option Pack (everything installed except Certificate Server);

Site Server v3.0, SP 1 (and SP 2 if SQL Server v7 is adopted);

Site Server Commerce Edition v3.0;

SQL Server v7.0 (or SQL Server v6.5, SP5a);

FrontPage Extensions for Microsoft Internet Information Server;

Microsoft Universal Data Access v2.1, SP 1;

Disk-drive maintenance software (Executive Systems Diskeeper v4.0);

Anti-virus software (including e-mail protection);

Seagate Crystal Reports v7 (for the Web Report Service);

Microsoft Encryption 128-bit security; and

Visual Source Safe.

The development platform employed in the present invention preferablyemploys Windows® NT Workstation 4 with SP 4 applied (NTFS filestructure). In addition, it is preferred that the following softwarepackages be installed on the server computer:

Office 97 with SR-2;

FrontPage 98 with SP1;

Visual Studio 6 Enterprise Edition with SP 2 (install all options forSQL server development);

Microsoft Universal Data Access v2.1 (SP 1 when available); NT OptionsPack (everything installed except Microsoft Certificate Server);

Outlook 98 and/or a compatible SMTP e-mail Client;

Anti-virus software; and

Seagate Crystal Reports v7 (Report Designer Component).

The following exemplary client hardware and operating systems representthe minimum browser system requirements for accessing the E-Commerce Website according to the present invention:

640×480 resolution;

256 colors;

Microsoft Internet Explorer 4.0 and Netscape® 4.0 or higher browsers;and

JavaScript® and Java® program execution enabled.

According to the present invention, it is preferred that a base level ofbrowser system functionality be established to determine the impact ondesign and content deployment. It is preferred that the browser systememployed in the present invention have a base level support of thefollowing exemplary programs:

Microsoft Internet Explorer v4.01 SP 1;

AOL Netscape Communicator v4.5;

AOL Netscape Navigator 4.0;

Moreover, Site Server membership services preferably are used to trackall persons who log onto the site. Microsoft Internet Information Serverlogging preferably facilitates Web-related navigation useful foranalyzing the marketing company's marketing and promotional campaigns.Marketing effectiveness is also measured as a result of analyzing ordertrend information available from Legacy-based data.

Logical Architecture

The logical architecture defines the preferred hardware and softwarecomponents utilized to support the E-Commerce experience as embodied inthe present invention. In a preferred embodiment of the presentinvention, a multi-tier system architecture is used based on logicaltiers (best seen in FIG. 5).

A presentation layer 56 preferably provides the physical representationof the system to the user and is divided into two sections: the userinterface (not shown) and the management interface (not shown). The useris able to browse marketing system product catalogs, manage theirmembership, and place orders by using the user interface of thepresentation. The management tools provide groups within the E-CommerceWeb Site to access the systems in a safe and structured fashion. TheActive Server Pages (“ASP”) and HTML pages allow the user and managementinterfaces to interact with the database and other programs. Moreover,Hypertext Transfer Protocol (“HTTP”) 58 is the set of rules forexchanging files (for example, text, graphic images, sound, video andother multimedia files) via the user and management interfaces on theWorld Wide Web.

A business layer 54 is preferably a logical layer that enables themarketing system to disengage business logic and rules from the data oruser interfaces. By disassociating business logic, the marketing systemis better able to manage changes in the business that must beimplemented at the system level. Further, business layer 54 can be usedto serve multiple clients and purposes. For example, business logicresiding in business layer 54 that validates an order on the E-Commerceweb site could also be used to validate orders that are placed bynon-web based systems. In one embodiment, business layer 54 isimplemented through the use of COM objects that share informationthrough defined interfaces. Preferably, each interface provides one ormore functions that another object or a program can call, such as butnot limited to, validating the orders as noted above.

A data layer 52 is preferably a logical layer where the data for thesystem is captured and preserved. Data layer 52 is preferablyindependent of the other layers and makes no assumptions about theexistence of the other layers. The technology and design used toimplement data layer 52 can be changed without causing the other layersto undergo a major revision (if any revision at all). Data layer 52 canbe implemented by, for example, but not limited to, Legacy systems orSQL servers.

The software and hardware specified for the infrastructure configurationdetailed above is the preferred underlying architecture for the entireE-Commerce network of the present invention. A combination of MicrosoftBackOffice products are also preferably used to provide feature contentas well as authentication of member users on the E-Commerce site. Theseexemplary products include the following:

Microsoft Windows NT® Server. Windows NT® is a registered trademark of

Microsoft Corporation, Redmond, Wash.;

Microsoft Transaction Server;

Microsoft Site Server Commerce Edition;

Microsoft Index Server;

Microsoft Message Queue;

IBM MQ Series For NT; and

Microsoft Exchange Server

The conventional Microsoft Site Server Membership Services model ofauthentication allows for a highly secure site with further ability toscale, audit and track users as site use flourishes. In one embodiment,the site co-exists securely with existing Legacy systems in a dualfire-walled “de-militarized zone” (DMZ) partition (best seen in FIG.25). The E-Commerce servers are preferably logically separated from theexisting mainframe environment as to minimize potential security risksand exposure to unauthorized access.

There are eight preferred components for the individual page web filesor sites of the present invention (as shown in FIG. 1). These exemplarycomponents include the following:

E-Commerce Main;

“My Home”;

“My Health”;

“My Self” (My Home, My Health, and My Self could alternately be referredto as

“Exclusive Stores”);

Member Perks;

Customer Service;

“Store for More”

“Virtual Office”; and

“Income options”

Supporting these sites requires the availability of content deploymentthat preferably includes the following exemplary items:

Catalog content;

Price and product content;

Language content;

Educational content;

Discussion content;

Promotional/Merchandizing content;

Customer Support content;

Marketing company business content;

Personalization content;

Independent Business Owner content; and

Merchant or Merchant Partner content

E-Commerce Main Site Functionality

The main area of the E-Commerce web site 102, as shown in FIG. 1,preferably provides Web shoppers with a starting point from which theycan navigate through the site in a well-known manner. The navigation isprovided by a plurality of web files associated with web site 102. In apreferred embodiment, the site is “served up” to shoppers differentlydepending on their membership or participation level. Merchandizingoffers, for example, are targeted differently to each membership class(i.e., Client, Member, Member Plus, or Independent Business Owner(IBO)). The primary navigation features links to the following exemplaryareas:

Income Options

There is a link to the “Income options” site, or page web file 140 whichallows shoppers to find out more about IBO status and the opportunity tobecome an independent business associated with the marketing company. Italso provides a quick and easy registration method for becoming anIndependent Business Owner. This assumes there is an existing link withan IBO. In a preferred embodiment, the income options page web filecomprises a multimedia presentation and information relating to themarketing system.

Go Shopping

A “Go Shopping” option can provide links to one of the stores within themarketing system (e.g., Health 1300, Home 1210, and Self 1400) or “Storefor More” shopping site 2950, or any partner stores or the equivalentthereof.

Site Search

There preferably is a link to a site search page 155 from the primarynavigational menu. Site search page 155 allows a user to enter commonterms and/or phrases, and searches for those terms or phrases within theE-Commerce web site.

Contact Us

A customer service menu, for example, on customer service page 2300,features a link to a contact us page that features an e-mail form thatallows shoppers to send in their comments about the Web site.

Member Sign-In

Existing registered Clients, Members, Members Plus, and IBOs are able tosign-in with a number assigned by the marketing company (IMC Number) andpassword from the primary navigation menu. When a non-referred customer(that is a customer that has not been referred to the site by a Member,Member Plus, or IBO) reaches the point in the site where they must beassociated with an IBO, a leads generation module will be invoked. Thisprocess assigns the new customer to an existing IBO, if specified by thecustomer (the application will prompt for association to an existing IBOprior to invoking the leads generation module). If there is no existingIBO relationship, then the leads generation module will assign acustomer to an IBO based on one or more criteria, preferably to choosefrom a select group of IBO's. As noted above, such criteria can include,but are not limited to, the following:

1) The IBO is a Direct Fulfillment, Founders Direct IBO. A DirectFulfillment IBO is one who preferably utilizes the company's directshipment method by which products are drop-shipped directly to theClient or Member, rather than being delivered through the IBO. AFounders Direct IBO is an IBO that has achieved a particularly highlevel of business activity as an IBO;

2) The IBO is active, or maintains a specified level of activity;

3) The IBO is in the geographic proximity to the client based on, forexample, postal or zip code.

The customer will then be given the IBO's contact information, with anoption (check box or suitable mechanism) to indicate if the customerwishes the IBO to contact them. Otherwise, the assignment is essentiallytransparent from the customer's perspective, and the IBO will only seevolume on their monthly reports. A generic name like “web customer” orsimilar name is used to insulate the client information in thisscenario.

Member Perks

There is preferably a link to the “Member Perks” site 1600 from theprimary navigational menu. In a preferred embodiment, members areallowed to register within the member perks site 1600.

Virtual Office

There is preferably a link to the “Virtual Office” site 2100 from theprimary navigational menu.

Merchant Partners

Exemplary merchant partners 1500 which may be included as a link fromthe E-Commerce Web site include, but are not limited to, the following:

Communications partners

Printing and publication partners

Financial Services

Customer Service

There is preferably a link to the “Customer Service” site 2300 from theprimary navigational menu in addition to other areas associated with theweb site. It is preferred that customer service option be available toall visitors to the web site.

“Store for More”

There is preferably a link to the “Store for More” 2950 from the primarynavigational menu. The “Store for More” can comprise all marketingsystem products and services, or a subset thereof.

“New Business Ventures”

There is preferably a link to the “New Business Ventures” (NBV) 150 fromthe primary navigational menu. NBV 150 can comprise informationregarding new business ventures between the marketing company and newbusiness partners or alternatively could provide links to new businesspartner web sites for additional information.

“Income Options” Site Functionality

The “Income options” Web site, or income options page web file 140preferably provides online material that describes the E-Commerceshopping opportunities to new shoppers and allows quick and easy IBOsign-up for prospects. The site serves as, for example, but not limitedto, a recruiting tool for Independent Business Owners, giving them aplace to send prospects for more information. In a preferred embodiment(shown in FIG. 7), the income options page web file 140 comprisesinteractive presentations 72 and a link to a process for signing up toqualify as an IBO 76.

The Income options page web file also preferably includes a collectionof presentations and informational pages about the various marketingsystem opportunities. In a preferred embodiment, the presentationmaterials are in a multimedia format and the income options page webfile includes an interactive presentation 72 that allows an individual,or prospective IBO, to view an income based on a quantity of sales ofmarketing system products and services sold through the marketingsystem. In other words, it allows a prospective Member to explore thebusiness opportunity of becoming an IBO. In such an embodiment, theprospective Member is presented with, for example, a series of dialogboxes 81 (as shown in FIGS. 8 a, 8 b, and 8 c) that allow theprospective member to enter the following four data items:

(1) Desired income level (81 a);

(2) Number of potential customers (81 b) interested in purchasingproducts and services;

(3) Estimated sales FIG. 81 c), wherein the sales figure represents adollar volume of sales to customer; and

(4) Estimated sponsor group number (81 d), wherein the sponsor groupnumber represents a number of individuals to be sponsored by theprospective

Member, or that the prospective Member could interest in becoming anIBO. It should be understood by one of skill in the art that each ofdialog boxes 81 a-81 d could include a drop-down menu that would allowthe prospective member to choose from a predetermined selection. Thesedrop-down menus could be provided by various means which are well-knownin the art.

Each of these four data items can be iterated by the prospective Memberto evaluate various combinations. Subsequent screens presented to theprospective Member explain how a selected income level can be achievedbased upon the number of customers, sales level to the customers, andsponsoring of other IBO's that in turn have customers and sponsor yetother IBO's. An exemplary screen is shown in FIG. 8 b. In this manner, aprospective Member can see how the combination of data items 2-4 resultin income (data item 1).

An exemplary iterative method based on the information provided by theprospective member is described below. It should be understood by one ofordinary skill in the art that such an iterative method comprises alarge part of a sales and marketing plan (described in further detailbelow) which can be presented to users through use of the presentinvention. To begin, the number of potential customers 81 b ismultiplied by the estimated sales FIG. 81 c to obtain a total salesfigure. The number of customers 81 b would also be multiplied by aretail price of the product or service to obtain a total retail price.The total retail price is subtracted from the total sales figure toobtain a total discount sales income. Next a total point value (PV) andtotal business volume (BV) are calculated based on the total salesfigure. A performance bonus income is then calculated based on acombination of the total point value and the total business volume. Theperformance bonus income is next added to the total discount salesincome to obtain a total income. This total income is finally presentedto the prospective Member. The calculation shown in FIG. 8 b is the sameas that described above in Example 1.

These steps can then be repeated using the sponsor group informationprovided by the prospective Member to calculate total sponsor groupbonus income which, when added to the total discount sales income notedabove, would give the prospective Member a total sponsor group income.This total sponsor group income can then be recalculated based on arevised sponsor group number which would represent how the prospectiveMember's business would grow by adding more registered users to his orher own personal group. An exemplary screen presented to the userfollowing the iterative process described above is shown in FIG. 8 c. Anexample of how the data shown in FIG. 8 c is calculated is shown abovein Example 2.

As noted above, the income options page web file may also offer a linkto a multimedia overview that provides further description of theseopportunities and the marketing company's plan. Exemplary plans couldinclude, but are not limited to, the Sales and Marketing Plan, or anyother marketing company plan information.

In one embodiment of the present invention, the Sales and Marketing Planis a marketing method by which an IBO builds an independent business.The Sales and Marketing Plan is unique and based on two fundamentalconcepts: selling, and sponsoring others who sell. In a preferredembodiment, the Sales and Marketing Plan of the present inventioncombines a marketing business with a membership buying opportunity. Thisis accomplished using either or both electronic commerce andface-to-face transactions. It should be understood that the presentinvention is not limited to any particular sales and marketing plan, orany particular method by which an IBO builds an independent business.

The primary navigation features within the income options page may alsopreferably provide links to additional exemplary areas, including thefollowing:

Goals

The purpose of the Goals area 74 is to provide prospects with severalreasons why they should become an Independent Business Owner. Thissection explains how to get started creating an E-Commerce business.

Electronic Retailing

Electronic Retailing is the selling of retail goods on the Internet. TheElectronic Retailing section 78 provides facts, statistics anddemographics of Electronic Retailing on the Internet in an effort toencourage prospects to sign up to become an Independent Business Owner.

Rewards

The rewards section 73 provides information about online marketing andpromotions offered to members in an effort to encourage prospects tosign up to become an Independent Business Owner.

Resources

To encourage prospects to start their own Electronic Retailing business,the resource area 75 provides information about all of the onlineresources available to Independent Business Owners for managing abusiness. These resources include, but are not limited to, access to theVirtual Office, up-to-the-minute news and information about a businessnetwork, marketing tips, and business partnerships that are available.

Keep Me Posted

The “Keep Me Posted” area 77 is a form that shoppers can fill out to benotified of new products and business opportunities available from theE-Commerce site.

In an alternative embodiment of the present invention, shoppers cancomplete a quick and easy registration form to become a member or anIndependent Business Owner within the Income options page. Clients andMembers are preferably assigned a Marketing Company (IMC) number, eitherthrough an association with an existing Member Plus or IndependentBusiness Owner, or through integration with the Leads Generation module.The IMC number establishes a profile and at the same time associatesthem with a Member Plus or IBO.

In a preferred embodiment, basic content available within the incomeoptions page web file does not change based on the user's registrationor participation level. However, one's participation level (i.e.,Client, Member, Member Plus, IBO) can affect access to some resources,for example, but not limited to, the interactive presentations. Each ofthe participation levels are discussed herein below with respect to itscapabilities within the income options page web file.

A non-registered user who has found the income options page web file,independently or through referral from a Client, Member, Member Plus, orIBO, but has not yet initiated a transaction (e.g., become a registeredClient) or become a Member may be curious about becoming an IBO, or mayjust be curious about how the business works. He or she preferablyenters from the main web site page, or from the navigational bar on anyE-commerce web page, to an opening page for the Income options area. Theunknown prospect is preferably free to go to anywhere within the Incomeoptions area. Links to all areas are preferably visible.

If, upon perusing the site, the unknown prospect wants to become amember, the prospect may go to Sign-up 76, where the prospect may signup as a Member or IBO. If the prospect does not indicate an IBO sponsor,then the Leads Generation module will assign the prospect to an IBO asdescribed herein. However, the unknown prospect may also desire to knowmore about the business opportunity, and decide to view an onlinedescription of the Sales and Marketing Plan. Upon clicking on theappropriate link, the prospect is presented with a logon screen. If theprospect has been referred by an IBO, the prospect simply types in therequired information, for example, but not limited to, an IBO number andaccess code, and is redirected to a multimedia presentation and othersupporting materials. This form will then pass through the Leadsgeneration program or module. The leads generation program will respondwith contact information to an IBO who can explain the Sales andMarketing Plan, or enable the prospect to view the Sales and MarketingPlan online.

A registered Client preferably has the same use options and patterns,which are not that different from that of the unknown prospect. TheClient may have come to the Income options area from curiosity, or mayhave been referred to this section by a sponsoring IBO. The Client'sexperience with the Income options module will differ from that of theunknown prospect in that the Client is an authenticated user with anexisting profile. If the registered Client wants to become a Member,Member Plus, or IBO, the sign-up function will lead them through aprocess to enable them to view the Sales and Marketing Plan online andsign up as either a Member, Member Plus, or IBO as applicable, throughtheir existing sponsoring IBO.

A Member preferably has the same use options and patterns as a Client.The Member may have come to the Income options area from curiosity, ormay have been referred to this section by their sponsoring IBO. The goalof the Income options page web file is different, however, with theMember. The goal is to entice the existing Member, who is alreadyfamiliar with the marketing system, into the business opportunity. Ifthe Member wants to become an IBO, the sign-up function will lead themthrough an appropriate process.

An IBO comes to the Income options module as an authenticated user. TheIBO is preferably able to access any material within the page web file,and is able to view the online Sales and Marketing Plan without havingto authenticate again. The IBO is allowed to use an additional piece offunctionality: an on-line form that allows the IBO to add or changeaccess codes to be given to prospects or existing Clients and Membersfor access to the online Sales and Marketing Plan. The link to thisfunction is preferably not shown to users who are not IBOs.

General Shopping Functional Specifications

The General Shopping section preferably provides the user interactionassociated with all of the E-Commerce features.

Once a WWW shopper has entered the marketing company E-Commerce site102, they are able to shop in a convenient and efficient manner providedby one or more shopping page web files associated with the web site. Inone embodiment, the system initially checks to determine if the shopperhas ever been to the site before. This check is performed by the system,through the use of, for example, identifying “cookies” left on theshopper's personal computer from the most previous shopping session. Ifit is determined that the shopper has been to the site before, theshopper is prompted to confirm their identity. The system then recallsany existing site personalization and proceeds with membershipauthentication, as described in more detail below. Greetings from theserver computer using the user's stored last and first names may also bepresented to the user following log in and authentication procedures. Inan alternate embodiment, the user simply enters his or her user name andpassword and the system checks the information for authentication of theuser.

In a preferred embodiment, membership authentication and personalizationinformation is stored in a central repository on the server computer.This information is passed from the server computer to an associatedmembership server computer via a Secure Socket Layer (SSL) connection byany method known to those having skill in the art.

If the WWW shopper has been authenticated, the system then automaticallydetermines the shopper's membership type and personalization, forexample, a Client, Member, or IBO. In a preferred embodiment, thisprofile determines how the site is rendered to the registered shopper,including what product, price, services and merchandizing the shoppersees. For new unregistered shoppers, the navigational menu providesregistration and membership opportunities.

New user registration or authentication may also occur at other areaswithin the E-Commerce web site of the present invention. Exemplary areasin which registration or authentication may occur are when anunregistered user (i.e., “Surfer”) attempts to link to a merchantpartner, attempts to enter the member perks page web file, attempts toenter the Virtual Office web page, or attempts to redeem a digitalcoupon. When a user reaches a URL for which they do not have access, atypical web server's default behavior is to display a generic errorpage. In order to provide a seamless experience, however, the presentinvention replaces the default error page with a customizedauthentication redirector (“AR”) page.

Referring now to FIG. 6, a flow chart depicts the functionality of theauthentication redirector page. At the AR page in step 60, if a userdoes not have an authentication identifier, such as an authenticationcookie, the AR page will redirect the user to a marketing page 62 webfile associated with the web site. Marketing page 62 web file describesthe benefits of different levels of membership, etc. If in step 60, theuser has an authentication cookie, then in step 64 it is determined ifthe cookie identifies the user as a surfer, or anonymous user. If theuser's cookie identifies the user as a surfer or anonymous user, thenthe page will again redirect the user to marketing page 62. If the userhas a cookie but is not a surfer or anonymous user, e.g., the user is aregistered customer, then the AR page will determine a participationlevel of the user (i.e., Client, Member, Member Plus, or IBO, forexample). If the participation level of the user meets a predeterminedaccess level for a given web page file which the user wishes to access(e.g., access is given to IBOs and Members Plus, but not Members orClient), then the user is granted access to the web page file. If theuser's participation level does not meet the predetermined access level(e.g., a user who is a Client in the above-noted example) then theauthentication redirector directs the user to a web page file 66explaining that the user's current membership level does not have accessto the resources or web page file requested. Preferably, page 66 alsoincludes marketing information to encourage the user to upgrade to ahigher membership level. It should be apparent to one having ordinaryskill in the art that the above-described authentication redirectorfunctionality is different than merely a registered user improperlyentering his or her username or password, wherein the user is redirectedback to the user sign-in page, as is known in the art. Theauthentication redirector functionality of the present inventionnavigates the user through the site based upon the user's participationlevel and access rights. If the user is denied access, the ARfunctionality of the present invention allows the user to change theirparticipation level and access rights by presenting an appropriate webpage to the user. This functionality provides a user-friendlyimprovement over conventional systems that display an “error” page webfile to a user when access is denied.

In general, WWW shoppers are able to browse through the producthierarchy and/or search for items using the E-Commerce product searchcomponent. As part of the main navigation, a general E-Commerce searchicon is available on all E-Commerce screens. Shoppers are able to typein the SKU, or identification number, or product names across allproducts available. The feature will search for SKUs or product namesacross all web stores presented to the user. Each match will bedisplayed on a single line that preferably contains the product longname, price and a link to the full product page. An appropriate messagewill be displayed if no items are found. In a further embodiment of thepresent invention, this search feature is extended to includenon-commerce-related items. In yet a further embodiment, custom querieson the database are generated to determine aspects such as commoncustomer searches.

WWW shoppers are also preferably able to search and add to theirshopping cart specific product SKUs, or identification numbers. Thissearch feature takes the consumer to the associated product page. Here,the consumer finds, for example, a product picture, description,educational and use content, as well as price. An icon in the generalnavigational menu also allows them to add the item to their standingorder (based on membership type). From the main product page, users canclick to other main product pages for products in the same category.

Shown in FIG. 9, a product list 90 is used for product browsing andshopping. Product list 90 is preferably built and maintained at theserver computer. A preferred product list 90 includes, for example, butis not limited to, a product name 90 a and price 90 b, and PV 90 c andBV 90 d for each product. In a preferred embodiment, only IBOs will seePV 90 c and BV 90 d for each product. Clients preferably see anadditional piece of information called Member cost 90 e. Member cost 90e is used to entice the Client to become a registered Member. Membercost 90 e is typically less than a retail price paid by the Client(Member Cost 90 e less than Your Cost 90 b). As shown, a product imagelink 90 f is also provided. Product image link 90 f preferably providesa link to a product image and detail page (not shown) which preferablyincludes a picture and details about the specific product. A link, “ViewNext 25 Products” 90 g, is also provided which allows the user to viewthe next 25 items appearing in product list 90 via the user's browser.

Again referring to FIG. 9, in order to select a product for purchase, auser fills in a quantity 92 on product list 90. Upon selecting thequantities for purchase for a plurality of products, the user can theninitiate the Add to Basket link 94, by double clicking a mouse, forexample, to add the selected products to a shopping basket.

An exemplary shopping basket display page 110 is shown in FIG. 10. Ascan be seen in FIG. 10, shopping basket display page 110 includesinformation about particular products and services selected for purchaseincluding, but not limited to, quantity 110 a, SKU 110 b, product name110 c, PV 110 d, BV 10 e, Member cost 110 f, Your cost 10 g, and totalprice 110 h. Preferably, Member cost 110 f is only available to Clientsfrom shopping basket page 110. In addition, it is preferable that onlyIBOs be able to view PV 110 d and BV 110 e from shopping basket page110. In order to update a desired quantity 110 a, the user must enter anew quantity in one of the quantity fields and click the “Update Basket”button 111.

Shopping basket page 110 preferably includes additional links to“Return” 113, “Continue Checkout” 115, and “Standing Order” 116. Bychoosing Return 113, the user is returned to the preceding page fromwhich the user chose to view shopping basket page 110. Exemplarypreceding pages could include but is not limited to, for example, aproduct image and detail page or the product list page of FIG. 9. Bychoosing Continue Checkout 115, the user is presented with Shipping info(see below). If the user has not authenticated at the time of choosingContinue Checkout 115, then the user is forwarded to a login/create newuser page (not shown).

By choosing Standing Order 116, the user is forwarded to a screen thatallows the user to create a new standing order profile. Typically, astanding order profile allows a user to set up an automated order systemthat sends products and/or services to the user at regular intervals,which are selected by the user. Such standing orders provide anefficient method for establishing long-term orders of products and/orservices from the marketing system. All items in shopping basket page110 are placed in the new profile. User then has the option of removingitems from the newly created profile.

In a preferred embodiment, a billing/shipping page (not shown) ispresented to the user upon the user's selection of Continue Checkout 115from shopping basket page 110 as described above. Shipping pagepreferably includes an area allowing the user to enter shipping andaddress information. As noted above, users must be authenticated to viewthis page. In the preferred embodiment, the billing/shipping pageincludes all profile information “pre-populated” into the appropriatefields of the page. If necessary, the user may overwrite thisinformation. Additionally, users have the option of having the shippinginformation the same as, or different from, their profile informationstored at the server computer. Like shopping basket page 110, theshipping page includes links similar to Return 113 and Continue Checkout115 as described above. In addition, conventional information fields canbe made available for weight-based shipping.

Once a user proceeds to checkout, the registered user is forwarded to anorder preview page. An exemplary order preview page 1100 is shown inFIG. 11. As can be seen in FIG. 11, order preview page 1100 includesinformation about particular products and services purchased including,but not limited to, quantity 1100 a, SKU 1100 b, product name 1100 c,Stock Status 1100 d, PV 1100 e, BV 1100 f, Your cost 1100 g, and totalprice 1100 h. Stock Status 1100 d presents information relating to theavailability of the products and services purchased. Such informationcan include, but is not limited to, whether the product is “in stock” oron back order. The purpose of order preview page 1100 is to show thetotal of the order 1102 with shipping and tax and to allow the input ofthe various payment method and related information 1104. As shown, theuser may proceed with the order, if all information is correct, byselecting the “Purchase” button 1106.

Upon selection of the purchase button 1106, a confirmation page (notshown) is then displayed which includes a “Thank You” for the order andan order identification number. The confirmation page also reminds thecustomer that a confirmation electronic notification (e.g. email) withorder confirmation/invoice number will be sent.

The present invention also provides the ability for those who orderonline to complete their order and call an 800 number to provide theircredit card information in a well-known manner.

The present invention also provides the ability to provide automaticshipments. Automatic shipments are preferably used to instruct themarketing company to automatically ship product to make up a lack ofvolume (up to a specific percent) for certain qualifications. If themarketing company determines the IBO, for example, has missed thespecified qualification as well as incentive program qualifications ifapplicable, an order is prepared from a list of predetermined product,shipped and billed by electronic bank draft or credit card.

The E-Commerce shopping page web files of the present inventionpreferably also include help pages to assist users unfamiliar with theonline shopping process. In addition, all order-related pages providecustomer service contact information as will be discussed in more detailbelow.

As noted above, authentication is preferably necessary to place anorder, in addition to such information as name, bill to, ship to,payment, or other similar information. There is registration informationthat is required regardless of the particular membership type. Thisinformation includes, but is not limited to, the following:

Personal information;

E-Mail;

Password;

Password hint;

Assignment of IMC number (done transparently for the Client); and

Assignment of PIN (Personal Identification Number) (done only forMembers and IBOs).

There are also a variety of optional registration features for eachmembership type, exemplary of these types of features include thefollowing:

Personal Preferences;

Business Preferences;

Shopping Profiles; and

Download and print documents.

The E-Commerce site of the present invention is available to any WWWshopper (general Web Surfer, Client, Member, Member Plus, or IBO). Asnoted above, the user's membership type preferably determines the levelof access to products and services that will appear during the shoppingexperience. The particular shopper is able to access the site using anyof the following exemplary methods:

Via the main E-Commerce page. The standard navigation throughout theentire E-Commerce site provides links to all web shopping sitespresented to the user;

Unique URL for each shopping site. Each web shopping site has a uniqueURL which a user can type directly from a browser window to access thesite;

IBO links. IBO sites provide links to specific shopping sites or productpages for their Members. An IBO may provide an individual web page forhis or her own business or group that allows the members of the IBO'sgroup to access the web site. The site preferably provides informationand other services to the members.

Preferably, this site is distinct from site 102;

Electronic or digital coupon e-mail links. Electronic or digital couponsare delivered to WWW Shoppers as an e-mail message. These coupons canalso have links to product pages or special deals.

As noted above, the site preferably appears differently based on theparticular user's type (i.e., Web Surfer, Client, Member, Member Plus,Independent Business Owner). The site first checks for a cookie, asdescribed above, when a user enters to determine if they are aregistered user. If the user has visited the site before, the systemwill automatically pull up their profile.

If the system cannot determine if the user has been to the site before,then the user will be able to register either as an existing or new userfrom the general navigation bar. Registration is optional untilcheckout; at which time, the system forces the user to register as anexisting or new user. Users who have forgotten their password are ableto request forgotten password hint information from a help page. Theonline registration process can be integrated to an existing marketingcompany computer system for assignment of IBO numbers and integration toan Automated Lead Generation Program module. Mainframe transactions areinterfaced to obtain IMC number.

With regard to new user registration, the present invention requires aminimum amount of information to be provided. Exemplary informationincludes, but is not limited to, a valid e-mail address, user specifiedpassword, home address and phone number. Upon registration of new users,an IMC number and/or IBO number is assigned to the new user.

Existing users who have already registered on the site, but are notautomatically known by the system, are able to register by enteringtheir username and password. Incorrect passwords or forgotten usernameswill direct users to a help/password hint HTML page which will promptthe user to enter his or her last name and email address. The e-mailaddress must be valid. When this information is looked up and verifiedin the member database, the user's password hint is displayed and a formfield is displayed for the user to enter his or her password hintanswer. Once this form is submitted, the password hint answer iscompared. If it matches, the user id and password are displayed on theuser's browser system screen. Alternatively, this information is sent tothe user via an email message. If it is not correct, the user has theoption of calling customer support. The data is preferably passed over asecure connection, such as secure sockets layer (SSL).

Once a user has registered, they may administer their own registrationinformation. This includes changing a password and other registrationinformation. Access to this registration information is through the“Member Benefits” section.

Registered users are transparently assigned a profile that holds contactinformation such as address, phone and e-mail address. Users are askedfor additional information in each main store to build on theirperpetual profile. Profiles contain any information filled out on-lineor through specific questionnaires and purchasing habits. Memberprofiles also determine how the site appears to the user, what productscan be purchased, product prices, special deals, purchasing incentives,etc. In addition, real time click-stream information is collected andmaintained, such as, but not limited to, purchase histories and page webfiles visited.

In this regard, shoppers are presented with an incentive to personalizethe site. When a registered shopper comes to the site, they can changethe default personalization/profile features such as e-mail reminders.To help the shopper understand how profile/personalization works and howit will benefit them, there is a link to a profiling assistant. Eachregistered user has a profile for the primary member. The primary memberhas the option of setting up and administering additional profiles(i.e., for family members). Once a user has registered, they are alsoable to modify their profile information. It is preferred that theprofile information is passed back to the host system or server computerfor retention, however, other well known retention systems may also beemployed.

Core Shopping Functions Common to All Shopping Stores

As noted above, as part of personalizing the site, a personal greetingis generated from the information in the member profile. The personalgreeting welcomes new users to the site once they have registered andalso welcomes previous users back to the site. The personal greetingalso can point out new products or special offers.

From the main product pages, users can browse other main product pagesin the same category. The main product page contains an image of theitem, a two or three paragraph description of the product, retail andmember pricing, and an optional link to a complete product pagedescription that includes usage and educational content. Typically,consumers navigate to the main product page through the producthierarchy or the product search.

Various product pages have a link to a more descriptive product page.This page may contain multiple images as well as more detailed producttext. In some instances, this link may reference the MSDS (MaterialSafety Data Sheets) sheets and other product information sheets in theVirtual Office download area.

Shoppers are able to select products for purchase by placing them intheir electronic shopping cart in a similar fashion to retail shoppingcarts. However, in contrast to conventional retail shopping carts, ashopper can add items to a single shopping cart from multiple storeswithin the E-Commerce site. A single shopping cart and single checkoutcan be used for purchasing items from the marketing company stores andfrom the merchant partner sites. It should be apparent to one havingordinary skill in the art, however, that any number of shopping cartscan be used in the present invention, but a single shopping cart ispreferred.

A product may be added to the shopping cart by selecting a button fromthe main product page. Consumers may add, modify and delete items intheir shopping cart. As part of the selection, the consumer is able tospecify an item quantity or place the item on a standing order. Whenviewing the shopping cart, the consumer is able to see the long name,price, and quantity of the particular product. Clicking the long namepreferably provides a link to the product page. In one embodiment of thepresent invention, the shopping cart comprises a list of marketingsystem products and services selected for purchase by a Client, Member,Member Plus, and IBO via a shopping page web file. Preferably, the listis maintained at the server computer and is updated each time a newproduct or service is selected for purchase by the Client, Member,Member Plus, and IBO.

WWW shoppers are alerted in the shopping cart, preferably aftercheckout, when a particular item can be placed on standing order. Thisfeature is dependent upon the particular membership type. Shoppers havethe option to put an item on standing order from the shopping cart.

According to the present invention, there is a “persistent” shoppingcart for the web shopping stores (shopping page web files allowingregistered users to purchase products and services from the marketingcompany, i.e., Home, Health, and Self) as well as the “Store for More”store. In a preferred embodiment, there is a persistent shopping cartfor the web stores and the merchant partners. This means that a shoppercan add items to a single shopping cart from multiple stores within themarketing company E-Commerce site. Products from both the web stores andthe “Store for More” store are then processed and fulfilled via oneorder. This adds to the overall efficiency of the present invention andprovides a user friendly environment for the web shopper. The persistentshopping cart also transverses the sites of other sellers participatingin the E-commerce facility, so a shopper can buy multiple product linesfrom multiple suppliers in a single virtual shopping transaction.

As marketing system products and services are selected for purchase bythe registered Client, Member, Member Plus, and IBO, a list isaccumulated and maintained at the server computer. An exemplary listincludes information included on shopping basket page 110 shown in FIG.10. As each subsequent request for a marketing system product andservice is received at the server computer, the product or service isadded to the list to create an updated list of marketing system productsand services selected for purchase. As such, as the user adds productsor services to the shopping basket, the server computer maintains anupdated list so that all products may be purchased from multiple sourcesin a single virtual shopping transaction.

It is envisioned by the present invention that there may be times whenthe consumer adds items to a basket and then leaves the site beforechecking out. In such cases, the present invention can purge or “cleanout” orphaned shopping carts or preserve the contents of the shoppingcart and contact or email the particular shopper to inquire whether theywish to complete the purchase.

Accordingly, in a preferred embodiment, a session is established when aregistered user accesses the E-Commerce web site. Likewise, the sessionis terminated when each registered user terminates access to theE-Commerce web site. At the server computer, the updated list ofmarketing system products and services selected for purchase via theplurality of shopping page web files is maintained for a holding periodthat begins when the registered user terminates the session with theE-Commerce site without purchasing the contents of the shopping basket(i.e., the user “abandons” the cart). In the preferred embodiment, thelist is maintained at the server computer for a holding period of atleast 30 days. It should be apparent to one of ordinary skill in the artthat the holding period can be less than or greater than 30 daysdepending upon the particulars of the marketing system and the economicsof maintaining “orphaned” carts.

According to the preferred embodiment, a dormant period is tracked,preferably by the server computer. The dormant period preferably beginswhen the registered user terminates the session. If no marketing systemproducts and services are added to the updated list during the dormantperiod, then an electronic notification, for example, an email, is sentto the registered user at the expiration of the dormant period. It ispreferred that the electronic notification includes a message to theuser that the marketing system products and services in the updated list(i.e., the shopping basket) will be deleted following a deletion periodif no additional products and services are added to the updated list ora purchase is not made by the user. The deletion period preferablybegins at the expiration of the dormant period. In the preferredembodiment, the dormant period and the deletion period are each at least15 days. It should be apparent to one of ordinary skill in the art thatthe dormant period and the deletion period can each be less than orgreater than 15 days depending upon the particulars of the marketingsystem and the economics of maintaining “orphaned” carts.

In a preferred embodiment, if a registered user at some point during thedormant period adds any number of marketing system products and servicesto the updated list, then the dormant period is preferably reset, forexample, to zero or zero days to the beginning of the period, at the endof the user's session. This reset dormant period can be referred to as asecond dormant period. The second dormant period can have the same ordifferent duration that the original or first dormant period. Again, ifno marketing system products and services are added to the updated listduring the second dormant period, then an electronic notification issent to the registered user at the expiration of the second dormantperiod. As described above, the electronic notification includes amessage notifying the user that the marketing system products andservices in the updated list will be deleted following a deletion periodif no additional products and services are added to the updated list ora purchase is not made by the user. If a user does add a product to thelist during the deletion period, then preferably both the dormant periodand the deletion periods are reset. Alternately, only the deletionperiod is reset.

In a preferred embodiment, the dormant period can be reset, for example,three times before the cart is emptied and the periods canceled. Itshould be apparent to one skilled in the art that the dormant periodcould be reset any number of times.

Moreover, if the user, at any time during the dormant period or thedeletion period, chooses to purchase the items in the list, then, in apreferred embodiment, both the dormant and deletion periods pertainingto the particular “orphaned” cart are stopped or canceled. It should beapparent to one having ordinary skill in the art that variousadjustments can be made to the holding, deletion, and dormant periods toaccommodate numerous variations of time periods depending, again, uponthe particulars of the marketing system and the economics of maintaining“orphaned” carts.

As part of the main navigation of the present invention, a generalE-Commerce search icon is available on all shopping page web filesassociated with the E-Commerce web site. The search feature allowsshoppers to type in the particular SKU number of a product or theproduct name for all products available. Alternatively, users can enterfree form text into an HTML form. The feature will search the SKU,product name, and a keyword column across all shopping page web filesassociated with the E-Commerce web site. The search is preferablydesigned to use SQL-like syntax so that exact, as well as similar,matches can be made. The keyword column is preferably a variablecharacter field that contains comma-separated keywords. These keywordsare setup at the same time a product is setup on the server computer.

The search is preferably accessible anywhere in the E-Commerce site. Ina preferred embodiment, users can restrict the search scope to cover acurrent category (for example, “category pages” 1200 a-1200 g shown inFIG. 12 b) and products in all sub categories, which include productsunder category pages 1200 a-1200 g. It is also preferred that the searchincludes products sold by the marketing company that are not featured ongenerally accessible product pages. Another feature of the search systemis that users may enter a particular shopping site, search for aparticular product, and place an order without having to navigatethroughout the entire site.

If a Client or Member searches for a specific SKU or product name, thesearch will display the product matches. In one embodiment, each matchis displayed on a single line that contains the product long name,price, and a link to the full product page. An appropriate message isdisplayed if no items are found. The marketing company may generatecustom queries on this database to determine aspects such as commoncustomer searches. Users can enter a shopping site, search for a productand place an order without navigating through the site.

Merchandizing Functions Common to All Shopping Stores

There are several exemplary merchandising initiatives or functionscommon to all shopping stores. These include, but are not limited to,electronic gift certificates, online coupons, deals of the week, specialpromotions, cross selling and up selling. There are also severalpreferred marketing and promotional functions for the E-Commerce sitesof the present invention. These are described in more detail below.

In one embodiment of the present invention, cross selling and up sellingare used to increase sales revenue and to aid shoppers with purchasingdecisions. An up sell will offer the shopper a product with morefeatures at a slightly higher price. A cross sell will offer the shoppera related item when a user adds something to the shopping cart and willbe shown on the SKU (Stock Keeping Unit) page. For example, on a laundrydetergent purchase, an up sell would offer an enhanced version of thedetergent, whereas a cross sell would offer a list of complementaryproducts, such as softener and bleach to add to the shopping cart.

In one embodiment of the present invention, electronic or digital giftcertificates are used to allow shoppers to purchase and sendcertificates electronically. Preferably, certificates are available inseveral dollar amounts.

Some exemplary products of the present invention may offer a competitivematrix of product information to aid shoppers with purchasing decisions.The preferred bridal and gift registry area allows shoppers to reserveitems from any of the shopping areas as well as catalog items. The“What's New” feature shows and describes new core-line products.

In addition, a personal profile input form may be included within eachof the shopping page web files associated with the E-Commerce web site.This form can be a questionnaire or other suitable form that a shoppercompletes and submits that provides information about their lifestyle,shopping, or product preferences. The system reviews the form andprovides product recommendations to the customer throughout theindividual shopping page web files, including, for example, the “MyHome,” “My Self,” and “My Health” pages, which will be described in moredetail below.

The information is preferably collected using a dynamically generatedquestionnaire. The responses are subsequently associated with a person'sprofile. Questions may be shared between different questionnaires, suchthat an answer to a questionnaire in one location can be used in anyother questionnaires that share the same or similar question. The resultof completing a questionnaire is a list of recommended productsgenerated on a report, which displays a photo, description, pricing, andoption to add any of the products to the shopping cart in the mannerdescribed above.

In addition, as a subset of personalizing the site, shoppers can beprovided with an e-mail notification with a digital coupon. The emailcontains an explanation of the coupon and a link that brings the user tothe E-Commerce web site. It can also automatically add the item to theshopping basket and apply the coupon against the shopping basket. In analternative embodiment, the user is able to add a SKU or productidentifier to the basket and enter the coupon manually to redeem thecoupon. The coupon is thus validated in the basket. Each coupon has anassociated identifier. The identifier is related to an IMC number toensure authenticity and uniqueness. When an IBO, Member, Member Plus, orClient redeems the coupon, the redemption date is filled in. If theredemption date is already filled in, then the coupon is invalid.

Each shopping site also provides product “deals of the week” and otherspecial promotions. These promotions are customized according to a userprofile. The ability to show or not show specials to all non-directfulfillment IBOs, Members, and Clients is also provided.

Preferably, products are grouped together into product clusters. Theseclusters are then offered as a set, possibly at a discounted price. Whenorders for these clusters are viewed by the shoppers, the individual SKUnumbers will be exploded for customer viewing (i.e., a gift set thatcontains three items).

As part of the site personalization feature, a shopper can request toreceive e-mail notifications of product specials. This request can beturned on or off from a link in the navigation menu, or withinstructions sent with every e-mail notification.

Each shopping store also provides a Help and/or Ask the Expert areawhere a user can receive, for example, but not limited to, expertadvice, virtual interactive consultation, how-to text-based orinteractive demonstrations, referral service, and up-to-the-minuteinformation. Multimedia demonstrations using animated GIF images mayalso be offered within the store using streaming video or other suitablegraphical systems.

Shopping Functions Specific to “My Home”

In one embodiment of the present invention, the marketing company mayoffer an extensive selection of one type of product via a shopping pageweb file. For example, the marketing company may offer an extensiveselection of home cleaning products in the E-Commerce site of thepresent invention to the Web consumer. As shown in FIG. 12 a, exemplaryproducts offered by the present invention, include but are not limitedto, the products described below for laundry 1200, cleaners anddisinfectants 1201, water-treatment 1203, cookware and cutlery 1205,tableware 1202, crystal/giftware 1204, and home services 1206 as shownin FIG. 12 a. Each of these exemplary products and an exemplary layoutof the My Home store can be seen with reference to FIGS. 12 a-12 h. Inaddition, the site may provide numerous links to merchant partner sites1500, providing other products and services.

As shown in FIG. 12 a, the My Home site 1210, in addition to the productareas described above and described further in detail below, the sitepreferably includes a link to a special features area 1207 whichpreferably includes links to special offers 1207 a, a what's new section1207 b, expert advice 1207 c, product search 1207 d, discussion groups1207 e, a my assessment area 1207 f, clean it up 1207 g, which canprovide cleaning tips, water watch 1207 h, which can provide furtherlinks to government web sites, such as the EPA, and cooking club 1207 i.

Exemplary laundry products are shown in FIG. 12 b and include core-linehome products such as concentrated detergent 1200 a, stain treatments1200 b, bleaches 1200 c, fabric softeners & finishes 1200 d, watersofteners 1200 e, fabric protector 1200 f, and combination packs 1200 g.Exemplary merchandizing initiatives that are common to the LaundryProduct area include, but are not limited to, the following:

Stain Remedies for Laundry/Home—This interactive page asks the shopperthe stain type and fabric type and displays the most suitable productfor removing the stain.

Stain Stories (Moderated Bulletin Board)—This is an area where theshopper can enter (e-mail) a story about a stain challenge and thesolution using products from the marketing company. This information ishandled in the form of a moderated bulletin board where input will bereviewed prior to posting on the site.

Laundry 101—This feature provides information on the lost art of laundrycare—“what your mother never told you.” The feature also providesinstructions on how to do laundry, how to read clothing laundryinstruction labels, and other laundry issues.

Personal Laundry Prescription—This is a user-specific survey that willassess the shopper's laundry style and provide a product recommendationbased on input received. Typically, users provide profile informationand, based on answers provided to questions, the survey displays aunique recommendation to the particular user.

Time Saving Tips—This is a list of laundry-related time saving tips.

Exemplary cleaners and disinfectants 1201 are shown in FIG. 12 c andinclude core-line house products such as multi-purpose cleaners 1201 a,bathroom cleansers 1201 b, kitchen cleansers 1201 c, and cleaningproduct combinations 1201 d. Exemplary merchandising initiatives thatare common to the House Cleaning Product area include, but are notlimited to, the following:

Personal Cleaning Plan—This is a survey that the shopper completes whichasks for a description of cleaning products used and provides a productrecommendation based on input received. This is similar to the PersonalLaundry

Prescription described above. Users provide profile information and arecommendation will be returned. Direct links to product pages are alsooffered.

Time Saving Tips—This is a list of cleaning-related time saving tips.

Exemplary tableware products 1202 are shown in FIG. 12 d and includecore-line tableware products such as dinnerware 1202 a, stemware 1202 b,flatware 1202 c, servicewear 1202 d, and table linens 1202 e. Exemplarymerchandizing initiatives that are common to the Tableware area include,but are not limited to, the following:

Decorating for the Seasons—This section provides tips and decoratingideas for seasonal table, mantle and flower treatments.

Decorating and Entertainment Tips—This is an informational etiquettesection.

Shoppers receive tips on information such as setting up a table, foldingnapkins, setting up a buffet and icebreakers.

Decorating Style Quiz—Shopper picks a decorating style from differentpredetermined style profiles. The style profile defines the shopper astransitional, traditional, casual, or formal and the system providesproduct recommendations that fit the shopper's style.

Interactive Table Top—This feature allows the shopper to select productsand display them on an online virtual tabletop.

Exemplary water-treatment products 1203 are shown in FIG. 12 e andinclude water treatment products and services including home systems1203 a, replacement filters 1203 b, technical support and parts 1203 c,and a water treatment library 1203 d. Exemplary merchandizinginitiatives that are common to the Water Treatment products areainclude, but are not limited to, the following:

Water Safety Facts—From this page, a shopper can find information onwater safety facts in their residential area by entering their zip code.There also are links to localized water safety reports and water facts.If requested, proactive e-mail can be sent to those requesting thelatest news on water safety issues.

Water Safety Reports in the News—From this page, a shopper can findinformation on water safety news reports and sign up to receive e-mailwith water safety reports.

Exemplary crystal/giftware products 1204 are shown in FIG. 12 f andinclude vases 1204 a, candleholders 1204 b, bowls 1204 c, stemware 1204d, paperweights 1204 e, and Christmas ornaments 1204 f.

Exemplary cookware and cutlery products 1205 are shown in FIG. 12 g andinclude core-line cookware 1205 a, create your own cookware set &accessories 1205 b, cutlery & shears 1205 c, replacement parts 1205 d.Exemplary merchandizing initiatives that are common to the cookware andcutlery products area include, but are not limited to, the following:

Cooking Club—This feature provides a recipe exchange area, database ofCooking Club members, profiles of longtime members, special offers tomembers, lists of recipes of the month, and links to other recipe Websites.

Streaming Video—The streaming video features stories about cookware andcooking.

Recipes—This feature provides a recipe exchange area where shoppers canpost a recipe to the site.

Exemplary home services links are shown in FIG. 12 h and includesecurity systems 1206 a, time-management systems 1206 b,telecommunications 1206 c, realty and mortgage services 1206 d, andinsurance services 1206 e. In a preferred embodiment, realty andmortgage services 1206 d and insurance services 1206 e are onlyavailable to Members, Members Plus, and IBOs.

Shopping Functions Specific to “My Health”

The “My Health” store is a single source for traditional and alternativehealth solutions including natural products tailored to the Webshopper's personal needs. This store offers a variety of health careproducts such as vitamins and dietary supplements. The site also offersconsumers a source for personalized, credible, comprehensive andup-to-date information services about natural and alternative healthsolutions.

The site is preferably organized into the following exemplary logicalareas which are shown in FIGS. 13 a-13 e: Vitamins 1302, Foods 1303,Therapeutic Magnets 1304, and Weight Management 1305 page web files orsites. As shown in FIG. 13 a, in addition to the logical areas notedabove, the site 1300 also includes a special features area 1301 whichcan include links to specials 1301 a, a “What's New” section 1301 b,Expert Advice 1301 c, Product search 1301 d, a discussion group 1301 efor shoppers, a “my assessment” area 1301 f, and a reference desk 1301g, which can provide information relating to various products andservices.

Referring to FIG. 13 b, the vitamins page 1302 preferably includesexemplary core-line products including children's vitamins 1302 a,multivitamins 1302 b, antioxidants 1302 c, herbals 1302 d, othersupplements 1302 e, and additional support materials. Exemplarymerchandizing initiatives that are common in the vitamins area include,but are not limited to, the following:

Library of Health-Related Issues Link—This is an in-depth and extensivelibrary that is searchable by symptoms with links to product informationand recommendations. The presentation of Library choices may be based onpersonal profile information provided by the user (i.e., if the primaryconcern is heart disease, a user can personalize the site to highlightthe current news in areas of interest). In an exemplary embodiment, alink is provided to a health education organization that acts as aresource for IBOs and other customers.

Link to Product Information for Physicians—This is a downloadable areawhere physicians can come to find out technical information on amarketing company's health care products. Information is targeted tophysicians but is open to viewing by all site users. This informationmay be modified by geographical area as would be apparent to one ofordinary skill in the art.

Links to Other Health Sites—The store provide links to other healthsites, such as, for example, Magnabloc.com, Trimadvantage.com,blionline.com, and NUTRILITE.com sites.

The Foods page web file 1303 preferably includes a plurality ofexemplary food products 1303 a as shown in FIG. 13 c. The TherapeuticMagnets page web file 1304 preferably includes products relating tovarious magnetic products 1304 a sold, for example, under the Magna Bloctitle as shown in FIG. 13 d. The Weight Management page web file 1305preferably includes dietary supplements and other weight loss relatedproducts 1305 a as shown in FIG. 13 e.

Shopping Functions Specific to “My Self”

The “My Self” store is a virtual spa service that provides informationabout current trends, skin care/cosmetics, hair care and aromatherapyproduct categories. Each of the exemplary page web files associated withthe My Self page web file 1400 are shown in FIGS. 14 a-14 e. The storesoffer time conscious Web consumers customization, expert advice, virtualinteractive consultation, how-to demonstrations, referral service, andup-to-the-minute information.

The site 1400 is preferably organized into the following logical areasas can best be seen in FIG. 14 a. These include the special features1401 including: Special offers 1401 a, What's New 1401 b, Expert Advice1401 c, Product Search 1401 d, Discussion Group 1401 e, My Assessment1401 f, and Virtual Face 1401 g. In addition, the site further includeslinks to the Hair Salon 1402, Skin Care 1403, and Cosmetics Counter1404. Exemplary products include hair care, skin care, color cosmeticsand aromatherapy products.

The Hair Salon page web file 1402, as shown in FIG. 14 b, preferablyincludes core-line products such as shampoos 1402 a, conditioners 1402b, treatment products 1402 c, styling products 1402 d, and other supportmaterials. The Skin Care page web file 1403, as shown in FIG. 14 c,preferably includes core-line products such as daily skin care systems1403 a, time defying products, supplemental skin care, special treatmentproducts 1403 b, and support materials. The Cosmetics Counter page webfile 1404, as shown in FIGS. 14 d and 14 e, preferably includescore-line products such as face, eyes, cheeks, lips, nails, accessoriesand support materials 1405 as well as an application tips area 1406including a plurality of information 1407 regarding advice for beautyapplications. An exemplary area preferably includes core-line productssuch as calming and energizing products as well as support materials.Exemplary merchandizing initiatives that are common in the cosmeticscounter page web file 1404 include, but are not limited to, thefollowing:

Virtual Face—The “Virtual Face” feature allows a shopper to experimentwith different hair colors and makeup styles. Multiple, finitecombinations may be shown based on user input of profile information.These will preferably be static images. In another embodiment, thisfeature allows users to scan in their own face and try different productcombinations in a fully interactive mode. As would be readily apparentto one skilled in the art, this scanning could be achieved, for example,by scanning in a photograph using a scanner, such as the 9100C FlatbedDigital Scanner produced by Hewlett Packard™ of Palo Alto, Calif., andforwarding the scanned image via, for example, email. Alternatively, adigital image, such as obtained using a digital camera, can be used. Adigital image from a CD-Rom or other storage media could also be used.

What's New—The “What's New” feature shows the latest trends incosmetics, skin care, and hair and how to create trendy looks using theproduct line. It also provides the most up-to-date information regardingscientific discoveries and demographic trends in the skin care industry.This feature also links to product pages.

Links to Merchant Service Partners

According to the present invention, and as shown in FIG. 15, themarketing company preferably has several merchant partners or partnerstores 1500 that participate and are affiliated with the E-Commerce siteof the present invention. Exemplary partners provide products andservices in a number of areas. Exemplary product and service areasinclude, but are not limited to, home and family services 1501, officeand technology 1502, sports and leisure 1503, food and gifts 1504, and“other products” 1505 which can include flowers, computers, books,apparel, and home and garden, for example.

Links to these merchant partner sites are preferably provided toshoppers based on their membership level (i.e., Client, Member, MemberPlus, IBO). In the preferred embodiment, a user must be authenticated asa registered Client, Member, Member Plus, or IBO to have access to themerchant partner links. Each of these relationships with the exemplarymerchant partners are described in more detail below.

Security—there is a link to a security company Web site. In addition tothis link, facts and figures on home security as well as free securityconsultation may be provided.

Energy—there is a link to an energy company Web site. In addition tothis link, tips on how to save money on an energy bill may be provided.

Telecom—there is a link to a telecom company Web site. In addition tothis link, tips on saving money on a monthly phone bill may be provided.

Time-Management—there is a link to a time-management company Web site.

Realty and Mortgage—there is a link to a Realty and Mortgage company Website. Access to this site is preferably limited to Independent BusinessOwners.

Universal IBO Benefits—there is a link to the Universal IBO Benefits Website. Access to this site is preferably limited to Independent BusinessOwners.

Auto Network—there is a link to information pertaining to an autonetwork.

Shopping Specific to Other Products

The Store for More site 2950 provides an area for products that do notfall within the parameters that define the “My Home”, “My Health”, and“My Self” shopping sites. These products may include catalog items aswell as a link to the marketing company-sponsored Internet ServiceProvider.

Members have the opportunity to sign up for the Internet ServiceProvider. It is a fee-based service. Preferred categories within theInternet Service Provider include, but are not limited to, custom set-upsoftware, e-mail, personal home pages, etc.

In one embodiment of the present invention, a separate store “Hot Buys”2900 is included offering a subset of the “Store for More” 2950 (seeFIG. 1) merchandise. This store may include 25 to 30 products with aparticularly good price/value relationship. These items may be added tothe perpetual shopping cart for ordering. The products will be fulfilledon one order with “My Home,” “My Health” and “My Self” products.

The Store for More site 2950 allows users to browse for products bycategories. The main page lists the categories and when a user selects acategory, the user sees either sub categories or product lists. When theuser selects products from the list they are then taken to a productdetail page. At the product detail page the user can add the product totheir shopping basket or view more information about the product asdescribed above.

In addition, a search function is provided allowing Clients, Members,Members Plus, and Independent Business Owners to seek out known “Storefor More” products and add them to their order in a manner similar tothe search function described above. An Independent Business Ownerpreferably has access to a text listing of products for ordering.

Order Fulfillment Process

The E-Commerce site according to the present invention features an ordermanagement system that includes, but is not limited to, the following:changing orders; canceling orders; support for recurring orders; andhandling back orders. Business-to-business capabilities are taken intodesign considerations. Miscellaneous items such as gift certificatesalso may be handled by the system of the present invention. Entry ofcustom instructions for personalized items, such as monograms, areavailable to the shopper as well.

Exemplary payment methods that may be employed by the present inventioninclude credit card processing or automatic bank drafts. As used herein,bank drafts are preferably payment option for warehouse-authorized IBOsthat allows them to order by mail or telephone and pay for the order byhaving the marketing company draft from their checking account. When themarketing company receives the IBO's order and PIN (PersonalIdentification Number), the marketing company sends the billinginformation to the IBO's bank, which then produces a transaction thatwill be drawn on the IBO's bank account. Both the IBO's bank and themarketing company must approve the authorization for drafts against theIBO's account. The PIN, as used in the present invention, is preferablya four-digit personal identification number that uniquely identifieseach IBO. In one embodiment, the PIN is assigned randomly by computer toall bank draft authorized IBO's. This is preferably a confidentialnumber known only to the IBO and is used to generate a bank draftpayment or to obtain PV/BV estimates.

Other mechanisms may be employed to provide receipt and notificationevents throughout the order cycle. The ability to provide month's salesvolume and order history is also available.

As described above, at any point during the shopping process, a user canview the contents of their personalized shopping cart. From the cart,the user can perform the following exemplary functions: changequantities; remove items; clear the basket; add or delete an item;indicate whether an item should be added to the user's standing orderlist; checkout; or continue shopping. The user is also able to markindividual items or complete standing orders. Upon completion of his orher shopping experience, the user proceeds through the checkout process.Each of these options have been described above.

When a shopper selects the check out link, the system first determinesif they are registered. If the shopper is not registered they mustregister before checking out. If the shopper has been authenticated,they will have the opportunity to review and confirm their personalinformation.

The registered shopper then proceeds to complete information such asbilling, shipping, and payment information. The shopper also has theopportunity to redeem coupons or digital gift certificates on thepayment information page. When a shopper is ready to check out,depending on the items placed in their cart, they may be able to accessthe financing page. The financing page provides sign-up information andstatic forms that tie in with the order processing system.Alternatively, an interactive form allowing online signup may beprovided to the shopper.

Users may also place individual products or an entire order on astanding order quickly and easily through the present invention. Usersmay also have multiple standing orders and the ability to add an item toa standing order on a one-time basis. In a preferred embodiment, thestanding order program (SOP) profiles are maintained on the mainframe.IBO's are able to access and maintain SOP profiles via the VirtualOffice. In a preferred embodiment, the standing order functionality canaccess the information maintained in the SOP profiles but it should beapparent to one of ordinary skill in the art that information containedin the standing order is not limited to that information maintained inthe profiles.

As part of the delivery information, the Web consumer also has theoption of indicating whether an order should be sent as a gift. Thismeans the order will be shipped without an invoice containing pricinginformation. Otherwise, the order will generally be shipped with aninvoice which is a computerized printout of an order issued to an IBO.It provides the IBO and the marketing company with an accounting of themerchandise ordered, PV and BV, IBO Cost, retail, tax, postage, redeemedvouchers/coupons, shipping information and IBO information.

It is preferred that the order delivery mechanism be able to handlenon-direct fulfillment orders. Non-direct fulfillment orders are, forexample, orders that are placed directly by the IBO for the Member orClient and are personally delivered by the IBO to the respective Memberor Client. If a Member or Client in a non-direct fulfillment group comesinto the site, they will shop just like everyone else, and the orderwill be invoiced and fulfilled by the marketing company. When an IBO ina non-direct fulfillment organization shops on the site and the order issubmitted, the IBO will get a notice indicating the “passing on” of theorder to the Platinum IBO or Ordering IBO. The Ordering IBO then paysthe marketing company, receives the merchandise, and resells it to thecustomer. The person ordering will also be sent a confirming email.Information in the shopping cart (i.e., the order) will be e-mailed tothe Platinum IBO or Ordering IBO.

Once a shopper completes the payment information, the shopper has anadditional chance to review the shopping cart before submitting theorder. If the user chooses to submit the order, the user willsubsequently receive an order confirmation notice by e-mail. E-Mailnotifications are sent to the customer at various points throughout theorder life cycle, including, but not limited to the following: orderprocessed/failed on host; order extracted for warehouse(non-cancelable), and order shipped. Details included on the emailnotification include order status, order number, line item details, subtotals, tax shipping, service charges, and a grand total. Thenotification also includes shipping/billing information. It alsopreferably contains a link that allows the user to view order historydetails.

In a preferred embodiment, a user may request information regarding thestatus of the order at any time after initial processing and beforereceipt of the products. Such a request could be fulfilledelectronically, for example, but not limited to, by email, or by anyother well-known methods, such as but not limited to, telephone or mail.

A process for handling returns in compliance with the marketingcompany's guarantee policy is also preferably included. The satisfactionguarantees are clearly stated at key decision making points in theordering process, such as when viewing product information and atcheckout. Procedures for returning a product for refund are posted andreturn forms are made available to download and print. Requests forexchanges/replacements are preferably handled via an online form. Theuser will enter his/her invoice number, item(s) and quantity(s) toexchange/replace, reason for exchange (e.g. damaged, shorted, broken,wrong size, etc.) and any additional comments in the appropriate fieldslocated on the form. The form will be e-mailed to customer service,which will then process the request.

In a particularly preferred embodiment, the present invention provides apre-paid postage label to be used in conjunction with returns orexchanges of products. A flow diagram depicting the process by which auser administers the pre-paid postage label in product exchanges and/orreturns is shown in FIG. 27. As shown in FIG. 27, the system presentsthe user with a copy of the satisfaction guarantee 2702. It should beapparent to one of ordinary skill in the art that the satisfactionguarantee is presented to the user via, for example, a web page or textbox preferably associated with the shopping page web file. After theuser has a chance to review satisfaction guarantee 2702, the userselects whether the user wishes to “return” or “exchange” (box 2704) anitem or plurality of items.

If the user selects “return,” an on-line return form 2706 is presentedto the user. The user is then requested to enter a plurality ofinformation (box 2708) on return form 2706, including, but not limitedto, quantity, stock number or SKU, the reason for the return, productdescription, and an invoice number. Additionally, it is preferred that acomments section is provided on return form 2706 so that the user cansupply feedback to the marketing company or merchant partners. As shouldbe apparent to one of ordinary skill in the art, a plurality of productsand/or services can be listed on return form 2706.

After the information has been added to the return form and accepted bythe user, the return form is then presented to the user in a format (box2710) that can be printed on a conventional printer connected to theuser's computer, for example. The user is requested to print the formand include the form in the box containing the product or products to bereturned. Finally, a pre-paid postage label used in conjunction with,for example, the United States Postal Service, is presented to theuser's computer (box 2712). The user can print out the pre-paid postagelabel and include it with the package of products to be returned to themarketing company. In this fashion, the marketing company pays for thecost of mailing the returned items.

If the user selects to “exchange” a product or products, the user ispresented with an exchange form 2714. The user is then requested toenter a plurality of information (box 2716) on exchange form 2714,including, but not limited to, quantity, stock number or SKU, the reasonfor the return, product description, and an invoice number. In addition,exchange form 2714 preferably includes an additional field which showsthe user those items available for exchange. In a preferred embodiment,products or services which are less than or equal to the price of thearticle to be exchanged will be available for exchange. The presentinvention, however, is not limited to such restrictions.

After the information has been added to the exchange form and acceptedby the user, the information is sent to the marketing company (box2718). The marketing company completes the exchange processing. Theexchange form may be forwarded to the marketing company by any method,including, but not limited to, email, regular mail, or telephone. It ispreferred, however, that the exchange form is sent to the customerservice representative via email.

“Member Perks” Site Functionality

The “Member Perks” or “Member Benefits” page web file or site 1600, asshown in FIG. 16, is directed towards allowing a Member to customizepersonal information for both the shopping and business environment.Personalization is preferably provided via a link on the “My Business”or “My Marketing System” page web file 1601. Profiling is the centralcomponent of the E-Commerce site of the present invention which offersadvantages and extra incentives to promote Member loyalty. Much of whatmakes member benefits significant is the total package of servicesavailable to Members (i.e., access to services, etc.) rather than the“Member Perks” section of the site itself.

Personalization in the “Member Perks” site is preferably implemented intwo ways: 1) linking to existing Internet portal services and 2)developing a customized control panel. Exemplary links to existingInternet portal services include, but are not limited to, the following:links to online national news; weather; sports; and stock quote feeds.This offers Members a customizable experience.

The second version of personalization employs the notion of acustomizable control panel. On a limited basis, this site offers linksto current interne service feeds along with other select personalizationfeatures that are offered within the E-Commerce shopping modules.Personalization can also include availability to PV/BV information forMembers Plus and Independent Business Owners. The Frequent BuyerProgram, or Member Rewards Program 1602, preferably designed exclusivelyfor Members, is also personalized.

The “Master Profiles” 1605 preferably contain a business profile, familymember profiles, shopping profiles, and other frequently accessedservices.

Membership benefits 1603 are displayed within the Member Perks 1600 pageweb file to attract potential customers to the opportunities of themarketing company business partnership. To entice visitors to sign upfor site membership via, for example, the Member Sign-up process 1604,an online gift certificate may be offered that can be applied to futurepurchases. Moreover, Membership pricing 1606 allows visitors to view thebenefits of membership through reduced pricing structures.

In a preferred embodiment of the present invention, an on-line formassociated with the member perks page is supplied to a registered user.The user then enters the user's personal information onto the on-lineform and this information is stored on a server computer. Thisinformation is subsequently used to customize the layout of theplurality of web files based on the personal information supplied by theuser.

In the preferred embodiment, access to the Member Service page web fileis based upon the participation level of the individual. It is preferredthat surfers, or non-registered users may not access the Member Perkspage. Clients preferably have access to limited personalization andfeatures within the Member Perks page. As shown in FIG. 17, exemplaryfeatures available to Clients include persistent navigation 1701, whichallows Clients to conveniently access a plurality of web pagesassociated with the marketing system via the Member Service page webfile, persistent merchandizing 1702, internet service feeds 1703,promotional email lists 1704, links to merchant partners 1705, and anumber of products and services 1706. As shown in FIG. 18, Memberspreferably receive all the features available to a Client, includingpersistent navigation 1801, persistent merchandizing 1802, internetservice feeds 1803, links to merchant partners 1805, and a number ofproducts and services 1806, plus the rewards of the Frequent BuyerProgram 1807 and the Rewards Merchandizing feature 1808 that complementsthe program. These will be described in more detail below. IBOs andMembers Plus preferably receive all the benefits of a Member, plus thebenefits of customized feeds 1909, such as PV/BV inquiry and businessnews (see, for example FIG. 19). News feeds are preferably created andmaintained by a marketing group associated with the marketing company.

In addition, the Member Perks area provides Member-only products andservices designed to encourage Member loyalty and make becoming a Memberattractive and exciting. At each membership level, shoppers are providedsignificant content and business value to encourage them to return oftento the site. Additional benefits and services are offered at each levelof membership, making the upgrade from Member to Member Plus toIndependent Business Owner an easy and exciting decision. The followingexemplary features are preferably implemented in this site:

Frequent Buyer/Rewards Programs—this program tracks a Member's shoppinghistory. Frequent buyers receive discounts and other incentives to keepthem coming back to the site.

Internet Service Feeds—Members have the option to customize theirenvironment by selecting from a variety of Internet service feeds suchas news, weather, sports, electronic greeting cards, maps, horoscope andfinancial information.

In one embodiment of the present invention, the following exemplaryservices are available in the Member Benefits section:

Rental Cars: Direct link to shop and book rental cars at a preferredprice.

Hotels: Direct link to shop and book room reservations at a preferredprice.

Eye products: Direct link to shop and order eye products at a preferredprice.

Computer Products: Direct link to shop and order computer products at apreferred price.

Universal IBO Benefits: Direct link to get quotes and apply forInsurance products at a special price.

As noted above, the preferred embodiment of the present inventionpreferably includes a method and system for facilitating an on-lineshopping and rewards program. Such a program rewards frequent buyerswith purchasing opportunities based upon the volume of marketing systemproducts and services purchased by that particular customer.

According to the preferred embodiment, the method comprises maintaininga catalog which includes marketing system products and services on aserver computer. An exemplary catalog 2000 is shown in FIG. 20. As canbe seen in FIG. 20, catalog 2000 preferably includes a plurality ofinformation relating to the marketing system products and services,including, but not limited to, a product number 2010 (“PROD. NO.”)associated with a particular marketing system product or service. In aparticularly preferred embodiment, catalog 2000 also includes amarketing products and services index which includes a productidentifier, or “PROD. ID.” 2020 for each of the marketing systemproducts and services. In addition, each of the marketing systemproducts and services are assigned a corresponding rewards value 2030and a redemption value 2040. These values are also preferably stored inthe catalog. The rewards value 2030 for a particular product or servicemay have the same or different value than the redemption value 2040 forthat product or service.

In the preferred embodiment, a registered Client, Member, Member Plus,or IBO is provided with an on-line order form (which can be the same asor similar to the form described above with respect to shopping) whichallows purchase/redemption from the catalog. In addition, a registeredClient, Member, Member Plus, or IBO is also provided with an on-lineredemption form which also allows purchase/redemption from the catalog.In this fashion, the user is allowed to purchase or redeem items fromthe catalog using the payment method described above or using points,which have been earned from previous product purchases.

Each of the on-line order form and on-line redemption form can be in theform of the shopping basket form described above with respect toshopping and as shown in FIG. 10. It should be apparent to one ofordinary skill in the art that any suitable on-line form may be used inthe present invention as long as the form provides a convenient methodfor allowing a registered Client, Member, Member Plus, or IBO topurchase products and redeem points for products. Likewise, it should beapparent to one of skill in the art that separate on-line forms can beused to carry out the purchase/redemption function or a single form canbe used.

When a registered user submits a rewards exchange request for marketingsystem products and services via the on-line redemption form, aredemption value corresponding to the marketing system products andservices chosen by the registered Client, Member, Member Plus, and IBOis preferably subtracted from a rewards database 2050. Rewards database2050 is preferably maintained on the server computer for storing rewardpoints 2050 a corresponding to a registered Client, Member, Member Plus,and IBO and a type identifier 2050 b. Type identifier 2050 b ispreferably a value associated with one of a Client, Member, Member Plus,and IBO. An exemplary type identifier 2050 b is a string selected fromthe group consisting of Client, Member, Member Plus, and IBO. As such,the rewards database allows the system to keep up with the total numberof rewards points accumulated by the registered user.

In a particularly preferred embodiment of the present invention, catalog2000 includes an accrual record 2060 and a redemption record 2070.Accrual record 2060 preferably includes a product number 2060 a, a typeidentifier 2060 b, and an accrual value 2060 c for the product number.Type identifier 2060 b is preferably a value associated with one of aClient, Member, Member Plus, and IBO. An exemplary type identifier 2060b is a string selected from the group consisting of Client, Member,Member Plus, and IBO. In the preferred embodiment, accrual record 2060comprises an accrual value 2060 c for each type identifier. In thisfashion, as a registered Client, Member, Member Plus, and IBO purchasesproducts, he or she will accumulate accrual values differently basedupon the particular participation level. These accrual values are thentransferred into rewards points 2050 a and stored in rewards catalog2050.

Likewise, redemption record 2070 preferably includes a product number2070 a, a type identifier 2070 b, and a redemption value 2070 c for theproduct number. Type identifier 2070 b is preferably a value associatedwith one of the Client, Member, Member Plus, and IBO. An exemplary typeidentifier 2070 b is a string selected from the group consisting ofClient, Member, Member Plus, and IBO. In the preferred embodiment,redemption record 2070 comprises a redemption value 2070 c for each typeidentifier. In this fashion, as a registered Client, Member, MemberPlus, and IBO purchases products, he or she will use redemption valuesdifferently based upon the particular participation level.

The following illustrates an exemplary purchase and redemption as setforth by the present invention. It should be understood by one ofordinary skill in the art, that the example that follows is forillustrative purposes only and should not be construed to limit thepresent invention. A registered customer purchases a product, which forthe sake of simplicity will be referred to herein as “product A,” fromthe marketing company. Product A has an accrual value 2060 c equal to,for example, 150 points for a type corresponding to a Member.Alternatively, for example, product A can have an accrual value 2060 cequal to 200 points for a type corresponding to a Member Plus or 100 fortype corresponding to a Client. This accrual value is added to therewards points 2050 a value maintained in rewards database 2050, therebyincreasing the user's rewards points 2050 a by 150 points. If the userlater wishes to redeem the 150 points for another product or servicehaving a redemption value 2070 c of 150 points or less, the userinitiates the process as described herein above. In response, redemptionvalue 2070 c, which may be less than or equal to 150 points, is thensubtracted from rewards points 2050 a in rewards database 2050. In anexemplary embodiment of the present invention, redemption value for theredeemed product, may be, for example, 150 points for a Member, 100points for a Member Plus, and 200 points for a Client. This process maythen be continued for subsequent purchases and/or redemptions.

“Virtual Office” Site Functionality

The “Virtual Office” site, or office page web file 2100 preferablycontains the tools and information needed to build a successful andprosperous marketing business. An exemplary Virtual Office Site Map isshown in FIG. 21. The site 2100 preferably includes a virtual officehome page 2110. Office home page 2110 includes a “What's New Content”link 2110 a, which provides links to new items within the office pageweb file and a “Virtual Office Tour” 2110 b, which allows an individualto tour the capacities of the office page web file.

From the virtual office home page 2110, a user can navigate to one ofseveral associated page web files. Exemplary associated page web filesinclude, but are not limited to, a quick links page 2120 a, a virtualoffice tour page 2120 b, a “My Business” page 2120 d, an informationpage 2120 e, and a services page 2120 f.

The site 2100 provides a virtual office for Independent Business Ownersand Members Plus on the Internet. The Virtual Office provides MembersPlus and IBO's with up-to-date business-related information as well asthe tools needed to run, plan, and grow a successful E-Commercebusiness. Qualified users can find items such as volume information,sponsoring information, new products and services, reports and businesssupport materials. Additionally, this area of the site offersinteractive features, such as online business transactions.

As noted above, there is also a link to a business transaction servicearea or “My Business” page 2120 d. Preferably, page 2120 d includes thefollowing exemplary links: rewards/incentives 2130 a, my organization2130 b, PV/BV 2130 c, business information 2130 d, and a Platinum Onlyexclusive page 2130 e, which allows IBOs who have qualified for aPlatinum level to view certain information about their businesses. Inone embodiment, a Platinum Level is an IBO who has met certainqualification levels, such as but not limited to, sponsoring at leastsix groups producing at a 25% performance bonus level (see Table 1) forat least six consecutive months.

The PV/BV page 2130 c preferably allows Independent Business Owners toperform Point Value and Business Volume (PV/BV) transfers from one IBOto another or perform PV/BV inquiries about their personal group. Inaddition, the IBO can view rewards and incentives available based onproduct sales and business growth via the rewards and incentives page2130 a.

In the “My Organization” page 2130 b, an IBO or Member Plus may view theline of sponsorship including a personal group comprising at least oneindividual selected from the group consisting of a registered Client,Member, Member Plus, and a second IBO.

It is preferred that a calculator 2130 f is available in the VirtualOffice site. The calculator can be used as a demonstration tool forIndependent Business Owners to show prospects how they can reach theirown business goals. The calculator can also be used to determine growthneeded to reach certain pin levels, growth needed to reach incentivetrips, sales volume needed to qualify for an incentive trip, and levelof business needed to produce certain income. Pin levels generallyrepresent, for example, the highest award level an IBO has attained.

The “What's New” link 2110 a is preferably part of the Virtual Officehome page and highlights and provides the links to any new informationin the Virtual Office section of the site.

The site also contains a business information area 2130 d which containsbusiness forms, such as registration and renewal forms, that members mayaccess. It is also preferred that the Virtual Office site containsuitable reports accessible by Members and IBO's within the VirtualOffice site. One example of such a report is a PV/BV status report. Fromthe PV/BV status report, an Independent Business Owner can access theirPV/BV monthly totals. IBO profile information is also available showinga profile of the IBO's business. The IBO profile information may belimited by level. Independent Business Owners can also accessinformation on their down-line that indicates which individuals need torenew their membership. As used herein, down-line refers to those IBOswho make up an individual IBO's personal group. This group could includepeople the IBO personally sponsors into the marketing system as well asIBOs that the down-line IBOs have sponsored.

The business information link 2130 d also preferably has links toseveral additional areas that include forms, policies, business practiceinformation and tax information. All forms are preferably available inPDF format in the download area, these may include: order; deposit;financing; membership; renewal; special order; affiliate; bank drafts;electronic deposit forms; warehouse authorization.

The information page 2120 e features several publications that include,for example: recognition pages and product news.

In one embodiment of the present invention, the following exemplaryservices 2120 f are made available to IBOs in the Virtual Office area:

Credit Cards—Information on the program and on-line application forcredit cards. This is preferably a direct link to a merchant bank.

Tax Audit—Information on the program providing tax audit representationto IBO's with links to providers

In the preferred embodiment, the My Organization page 2130 b, as notedabove, allows an IBO to view information regarding the IBO's line ofsponsorship (LOS). The IBO is preferably given various options as towhat information the IBO would like to view. Exemplary options are setforth below:

1. Flag all of my immediate down lines, including my immediate sponsorand my immediate upline.

2. Flag down lines that have entered my organization 7 or fewer daysago. (in one embodiment, a limit of 1 to 30 days is provided)

3. Flag down lines (excluding down line PD organizations) whose renewalfee is 10 or more days late. (in one embodiment, a limit of 1 to 90 daysis provided)

4. Flag down lines with a ‘last name’ or ‘member number/IBO or IMCnumber’ of ______.

This information is derived from queries into a Member Summary Tablepreferably established at the server computer. Item 1 above allows theIBO to begin what is referred to as “LOS Surfing” without any filtersbeing applied. Items 2 through 4 places a flag next to a list of downlines meeting the specified criteria. For Platinum IBOs this is a listfrom within their direct distributorship. For other IBOs this is a listfrom their immediate down lines. As used herein, a Platinum IBO is anIBO who has successfully satisfied sales performance criteria and isconsidered the leader of a group of other IBOs he or she has directlysponsored, and of those who these IBO's have sponsored, and so ondown-line.

As noted above, LOS information is derived from the Member SummaryTable. This allows an IBO to surf or navigate through theirorganization. An organization is navigated one level at a time (e.g.,from Platinum Distributor to Platinum Distributor or Member Plus toMember Plus).

Referring to FIG. 22, there is shown an example of the structure andcontent of LOS information for an IBO named “Bob” 2200. FIG. 22 showswhat an exemplary initial display of Bob's organization would look likeif option 1 above was selected on the “My Organization” page 2130 b ofFIG. 21. The display shows Bob's 2200 immediate sponsor 2210, immediateupline 2220, and down lines (Jim 2230, Joe 2240 and John 2250). Thephrase “upline” generally refers to, for example, but is not limited to,those IBOs in a line of sponsorship who were sponsored before aparticular IBO, in this case Bob. Only if Bob selects Jim'sorganization, will he see Jim's down lines. Bob could continue to selectdown lines as desired.

In addition to LOS surfing, an IBO has access to information relating tothe sales of marketing system products and services to, and by, both theIBO and the IBO's personal group via the Virtual Office site. Again, theIBOs personal group, like the LOS, preferably includes at least oneindividual selected from the group consisting of a registered MemberPlus, and IBO. Information that is supplied to the IBO may include salesof marketing system products and services to the personal group andsales of marketing system products and services by the personal group.Additionally, information relating to sales of marketing system productsand services to the IBO and sales of marketing system products andservices by the IBO can be provided to the IBO.

Additionally, many IBOs prefer to view the total point values andbusiness volumes being generated by individuals in their personalgroups. In order to accomplish this, the present invention totalsindividual point values (PV) assigned to the marketing system productsand services sold to and by one of the registered users to achieve atotal individual point value. The invention further totals individualbusiness volumes (BV) assigned to the marketing system products andservices sold to and by one of the registered users to achieve a totalindividual business volume. The IBO can then view the total individualpoint value and the total individual business volume via the virtualoffice page web file.

In another embodiment, the present invention allows the IBO to view thetotal PV associated with sales made by and to the IBO and the total BVassociated with sales made by and to the IBO. As described above, thetotal point values for each product sold by and to the IBO is added tothe total business volumes for each product sold by and to the IBO.These values are then added together to allow the IBO to view his ownpersonal total PV and BV values.

In another embodiment, the present invention allows the IBO to view thetotal PV associated with sales made by and to the IBO's personal groupand the total BV associated with sales made by and to the IBO's personalgroup. As described above, the total point values for each product soldby and to the IBO's personal group is added to the total businessvolumes for each product sold by and to the IBO's personal group. Thesevalues are then added together to allow the IBO to view his personalgroup's total PV and BV values.

In another embodiment, the present invention adds the IBO's personalgroup's total PV and BV values to those of the individual IBO to obtaina total group PV and a total group BV. This of course would contain allproducts and services sold to and by the IBO and sold to and by theIBO's personal group. These values are then presented to the IBO uponthe IBO's request to view his or her total group PV and BV.

In another embodiment, the present invention establishes a plurality ofescalating levels, wherein the escalating levels are preferably afunction of sales and marketing products and services. For example, alevel may be based on a total volume of sales of marketing systemproducts and services. Therefore, as more products and services aresold, the higher the level can be attained.

Within the office page web file, as noted above, an interactivecalculation method, for example, an electronic calculator, is preferablyprovided. The interactive calculation method allows the IBO to determinea quantity or volume of sales needed to reach one of the plurality ofescalating levels. In a preferred embodiment, the IBO can use theinteractive calculation method to determine a quantity or volume ofsales needed by one of the individuals in the IBO's personal group toreach one of the plurality of levels. This information can then be usedby the IBO to help each of the individuals in the IBO's personal groupmeet the next sales challenge and to provide them with the help thatthey need. In this fashion, each of the pieces of information providedby the office page web file 2100 aids the IBO in growing the IBO'spersonal business via the E-Commerce web site of the present invention.

Customer Service Functionality

The E-Commerce Web site of the present invention also preferablyprovides a variety of customer service functions in order to minimizethe need for shoppers to make a phone call for assistance. Exemplaryfunctions are described hereinafter.

In the preferred embodiment, customer service is an option from the mainnavigation in the E-Commerce web site and is available in all areasassociated with the web site. It is preferred that customer serviceoption be available to all visitors to the web site.

A layout of an exemplary customer service page web file 2300 is shown inFIG. 23. In a preferred embodiment, customer service page web fileincludes a plurality of associate page web files including: a “How touse” file 2300 a; an “About Us” file 2300 b, which describes, forexample, the marketing company of the present invention; a “Placing anOrder” file 2300 c, which describes how to place an order; an “About MyOrder” file 2300 d, which includes information about prior or existingorders; a “Contact Us” file 2300 e, which includes contact informationfor the marketing company; a “Edit Profile” file 2300 f, which allowsthe user to edit their personal information which has been previouslyprovided by the user, and a “Forgot Password” file 2300 g, which allowsthe user to lookup their password in case they have forgotten it.

In a preferred embodiment of the present invention, when a user selectsthe Customer Service file 2300 from within the web site, the userreceives a personal greeting from a Virtual Customer ServiceRepresentative 2400 (“VCSR”) (as can best be seen in FIG. 24). VCSR 2400is preferably an image of an individual portrayed as a Customer ServiceRepresentative (“CSR”) on a helpline. As the user selects areas ofCustomer Service to view, the same CSR will remain with the user, butnew images of the same CSR appears. The VCSR provides the user withinformation and choices while guiding them through their experiencewithin the web site. Repeat visits to Customer Service preferably givesa different CSR on a rotating basis.

Exemplary choices, as shown in FIG. 24, include, accessing accountinformation 2405, using a searchable FAQ of common questions 2410,review the Satisfaction Guarantee information 2420, and “Contact Us” orcontact the marketing company 2425. These choices will be discussed inmore detail below.

“Contact Us” 2425 preferably comprises of one or more e-mail contactmethods. Online e-mail forms for sending questions or requests areprovided where appropriate. The general “Contact Us” form handles allgeneral customer service-related and feedback questions in addition torequests for exchanges and refunds of products. In addition to e-mailcommunications, phone numbers and postal addresses for writtencommunication are provided.

The satisfaction guarantees accessible by the view satisfactionguarantees link 2420 are also clearly stated at key decision makingpoints in the ordering process such as viewing product information andat checkout. Procedures for returning a product for refund is posted insimple terms. In the United States, a pre-paid postage label is providedonline for returning items.

The searchable Frequently Asked Questions (FAQ) area 2410 is alsoavailable for each section of the E-Commerce site. The marketing companypreferably provides the initial list of FAQs for each section and thenmaintains it once users pose questions.

A customer is also able to pose a product usage related problem orquestion and receive recommended products and instructions (e.g., “Howdo I get grass stains out of blue jeans?”). Product support spans bothcustomer service and the shopping experience and is coordinated betweenthe two functional areas.

The site can also include an online pop-up (tool-tip) help for variousfunctional, membership, shopping and navigational items.

Content Management and Maintenance

Content management and maintenance of the E-Commerce site of the presentinvention allows suitably privileged users access to managementfunctions on the product catalog and merchant information database onthe server computer. Particular areas of the site are the responsibilityof the content owners regarding ongoing maintenance. All site content ispreferably copyrighted and owned by the marketing company. These areasare identified to assist with resource planning.

In terms of user access, access to the content management andmaintenance will be restricted. Employees of the marketing company areable to add, delete and modify items in the product catalog database.The typical use of the item management tool is to modify item attributessuch as long and short description, and item images. The managementsystem tracks basic audit information such as the time, date and userwho made the last change to an item. Exemplary attributes include, butare not limited to the following:

General Shopping

Product information consists of complete and partial productdescriptions, product images in multiple sizes and translations;

Supports multi-currency payment options;

Product selection determined by target group. Products are flaggedaccording to membership type, country of origin and language;

Deals of the week and promotions;

Product/SKU search function across all stores, delineated by targetgroup;

E-Mail alert of product specials;

Online content and maintenance of a list of Frequently Asked Questions;

Cross-selling and up-selling;

Competitive matrix of information where content exists;

Product clusters, ability to purchase multiple products;

Animated gifs, including multimedia demos;

Links to other merchant sites and services;

Content outside of product content such as order processing, e-mailcorrespondence to support multilingual requirements; and

All features, static navigation images and text and links to supportmultilingual requirements.

“My Health” Store

Online technical product information for physicians; and

All features, static navigation images and text and links to supportmultilingual requirements.

“My Self” Store

Online content for the “What's Hot” in hair and color area;

Online content for the “What's New” area; and

All features, static navigation images and text and links to supportmultilingual requirements.

“My Home” Store

Online content for stain remedies for laundry and home;

Online content for Laundry 101 feature (how to do laundry, read labels,etc.);

Online content for different holiday decorating tips;

Online water safety facts organized by country zip code or postal code;

Online “My Home” store testimonials;

Online content for the range of personal laundry prescriptions;

Online content for the range of personal cleaning plans;

Online content and product images for the range of decorating styles;

Online content and product images for range of interactive tabletopoptions; and

All features, static navigation images and text and links to supportmultilingual requirements.

“Member Benefits”

Online content needed for frequent buyer reward programs; and

Online content needed for certificates and any sign-up benefits;

All e-mail, features and links to services such as News, Sports, Weatherand Stock Information, support multilingual and multinationalrequirements.

“Virtual Office”

All features, static navigation images and text and links to supportmultilingual requirements.

Customer Service

Online content for product warranties, service contracts andregistration forms;

Online content for pop-up helps descriptions;

Reply to online multilingual inquiries;

All features, static navigation images and text and links to supportmultilingual requirements; and

Online content and maintenance of a list of Frequently Asked Questions.

Income Options

Online content for Sales and Marketing Plan and/or any other businessmaterials provided to shopper; and

All features, static navigation images and text and links to supportmultilingual requirements.

The management system also provides an interface to create, modify anddelete product categories as well as place items in a product classhierarchy. The management system also provides an interface to create,modify and delete product item shipping information. This includes beingable to create, modify and delete shipping types and assign prices forshipping types for a given item. In addition, for each item, a defaultshipping method can be specified. This also includes specifying validship to regions for the specified items.

Use Scenarios with Management Content

1. Managed Content with Generated Page

In this scenario, there is preferably a management template and adisplay template associated with each page type. A content manager needsto open a browser system from his/her workstation and go to a specialinternal web site that is used to manage content associated with the website. The content manager logs on, and selects an operation from a listof links to include: check in-box (workflow), and a link toadministration for each section the content manager is allowed to workwith. (Users, groups and permissions are set up and maintained in amanager). Administration for each content section entails adding a newcontent page using a simple data entry form or selecting an existingpage from a list, pulling up the data in that form, and saving changes.The entire application is operating inside a navigation program, such asInternet Explorer 4.x.

Behind the scenes, the workflow application and the contentadministration pieces reside on a server computer. The applicationserver component (which displays the pages to the internet user) pullsthese records off of the same database that the server computer ismanaging.

2. Content Management with E-Commerce Server/ASP Page Delivery

This scenario applies to catalogs associated with one or more of theplurality of shopping page web files. The content management for theShopping catalogs is one option in the administration list. To thecontent manager, it does not look any different, and it leverages thesame workflow application. However, the process to launch content ispreferably different. Instead of using the database for the productinformation pages (product information pages encompassing any contentthat is served in the Shopping application of the E-Commerce web site),the manager manages content up to the database insertion point—the“live” content is stored in the Commerce product/catalog/shoppingdatabase. A customized workflow is necessary for any section of theE-Commerce site that uses this hybrid content management/contentdelivery system.

When the content manager selects to edit a content page in the catalog,the application “pulls” the data for that record from the live database.The new or updated record in progress is stored in an “edits” database(a separate database that could be a table on the logical database onthe E-Commerce SQL cluster) until workflow is completed. Preview isenabled by bringing up the live ASP template, and passing parameters(these can include all information required to draw the page in ASP aswell as a “preview” flag). The “preview” flag needs to be able to changethe data connection, so that the page is looking to the “edits”database. Upon “launch,” the last step in workflow, the customizedworkflow application in executes an “update” query on the live database(or table) and replaces the record.

Reporting

There are several business reports made available to Members Plus andIBO's within the Virtual Office site as noted above. Exemplary reportsinclude, but are not limited to the following:

PV/BV Status Reports—Independent Business Owners can access their PV/BVmonthly totals and line of sponsorship of PV/BV.

IBO Profiles—IBO profile information made available showing a profile oftheir business. May be limited by level.

Line of Sponsorship Information—Allows Independent Business Owners toview down-line pertinent personal information such as name, address andtelephone number.

Internal Business Information—Allows Independent Business Owners to viewtheir PV/BV information and qualification information for their internalorganization.

Renewal Information for Down-line—Allows Independent Business Owners toaccess information on their down-line that indicates which individualsneed to renew their membership.

There are also a number of system reports made available to Members Plusand IBO's within the Virtual Office site. Exemplary system reportsinclude, but are not limited to the following:

Order Fulfillment and System Reporting—Tracks and analyzes shopper'sinteraction with the site such as popular pages, trends, popular dealsand promotions, the path visitors take to get to popular pages, how longthey stay, where they came from.

Network Communications Configuration

Referring now to FIG. 25, there is shown one embodiment of an exemplaryimplementation of a marketing company network suitable for use with thepresent invention. The company preferably hosts all Web-related serviceswithin the firewalls of the company. As shown in FIG. 25, a DMZ 2502 islocated between an external firewall 2504 and an internal firewall 2506.DMZ 2502 preferably comprises web servers 2510 for receiving Web trafficand routing Database traffic. Servers 2512 route http traffic. Trafficis routed by internal firewall 2506 onto Internal Network 2520. Host2530 and internal servers 2540 also route traffic onto the InternalNetwork 2520. User 2550 interfaces to the system preferably through apublic network such as the Internet 2555.

Data may be stored according to the present invention in a variety ofwell-known data sources, which can reside in mainframe, AS/400, UNIX andPC based systems, such as host 2530. The majority of the E-Commercetransactions are preferably transactions running on a Legacy system. Thebackend data sources in host 2530, for example, reside in the followingexemplary formats: IMS on the MVS hosts, DB2/400 on the AS/400 hosts andSybase on the UNIX systems. The following table (Table 3) identifies anembodiment of intended locations of database information required tosupport an E-Commerce environment of the present invention. It should beapparent to one of skill in the art that the following table isexemplary and does not limit the present invention to the particularobjects set forth below.

TABLE 3 Windows NT ® ES/9000 AS/400 Recurring Web Recurring OrderRecurring Order Order Management Management Management Web OrderTracking Order Order Tracking Customer Tracking Customer Service ServiceE-Mail and List Processing Web Content Management Web MembershipMembership Membership Management Management Management PromotionalPricing Promotional Pricing Promotional Pricing Content Search InventoryInventory Inventory

Moreover, data is stored in a variety of data sources that reside in,for example, Legacy, UNIX and PC based systems. It is preferred that amajority of the E-Commerce transactions be processed on either an IBMES/9000 and/or AS/400 Legacy system, such as host 2530. It should beapparent however that other suitable systems may also be employed.

Testing

To implement a system as embodied in the present invention, it should beapparent to one of ordinary skill in the art that an iterative testingand deployment plan could be useful. Exemplary testing procedures forimplementing the present invention are discussed below. It should beapparent to one of ordinary skill in the art, however, that othersuitable devices and/or methods may be used.

Unit Testing

The process of testing individual application components/modules. Thisentails the individual programmer testing the component versus thespecification given. This test ensures that the component operateswithin the specified parameters and is self-contained insofar as tracingand error trapping.

Integration Testing

This phase of testing is to test the interaction between the componentsspecified in the design specification. All components actingindependently should now operate smoothly within the integratedenvironment with respect to data integrity, memory usage, error handlingand tracing.

Regression Testing

The process of developing a reiterative process (usually scripts) thatwill test the base functionality of a site. This ensures that changesmade during application development do not produce further errorsthroughout the system.

Systems/QualityAssurance (QA) Testing

The process of testing a suite of application components/modules, whichconstitute the complete application. This is usually described as“black-box testing”, because Quality Assurance personnel are concernedwith ensuring that the application behaves, as it should (i.e., theapplication functions according to end-user requirements).

Stress Testing

The process of verifying that different services will be delivered asexpected under varying loads. Microsoft offers several in-housedeveloped tools free of charge for stress testing. One such tool, theMicrosoft Web Capacity Analysis Tool (WCAT) is well-suited for testingE-Commerce configurations. The tool is used to simulate a variety ofworkload scenarios on the network, allowing a determination to be maderegarding the best configuration for the server and network. WCAT isdesigned specifically for evaluating Internet servers running MicrosoftWindows® NT Server and Microsoft Internet Information Server (IIS).

WCAT provides more than 40 ready-to-run workload simulations that enablethe user to test the download of various-sized pages or content from theserver at different levels of connectivity. The tool is capable oftesting Internet server performance using Active Server Pages (ASP),Internet Server Application Programming Interface (ISAPI) extensions andCommon Gateway Interface (CGI) applications.

To determine the maximum possible performance of the E-Commerce sites,the following are preferred:

An isolated private network should be available (so as not to disruptnormal business operations);

The generation of enough Web clients to max out a test Web server;

Adequate network bandwidth (100 MBPS or better);

Several network cards/connections to distribute the load; and

A multiprocessor database server for scalability testing (intendedhardware for database services).

Performance/Capacity Testing

Performance/Capacity test ensures that the system is capable of meetingits performance and capacity requirements. A performance/capacity testspecification outlines the tests to be performed, sample data that needsto be created and any test software that needs to be developed.

Usability Testing

The process of verifying that users can accomplish their tasks with thesoftware as well as ensuring that software meets recognized standards.As an example, the CSS Style Testing Tool (StyleT) performs a series oftests to ensure that the syntax of the Web content meets the CascadingStyle Sheet (CSS) Specification.

Acceptance Testing

The user organization tests the complete application against therequirements of functional acceptance (“black-box” testing). E-Commercebrings together very complex business logic (different membership types,language requirements, product types, member profiles, content creationand distribution methods) as well as several layers of technology.Testing is forecasted to be one of the critical success factors andaccordingly requires considerably more time to validate and implementthe deliverables.

Computer System

A computer system capable of carrying out the functionality describedherein is shown in more detail in FIG. 26. Computer system 2600 includesone or more processors, such as processor 2604. Processor 2604 isconnected to a communication bus 2606. Various software embodiments aredescribed in terms of this exemplary computer system. After reading thisdescription, it will become apparent to a person skilled in the relevantart how to implement the invention using other computer systems and/orcomputer architectures.

Computer system 2600 also includes a main memory 2608, preferably randomaccess memory (RAM), and can also include a secondary memory 2610.Secondary memory 2610 can include, for example, a hard disk drive 2612and/or a removable storage drive 2614, representing a floppy disk drive,a magnetic tape drive, an optical disk drive, etc. Removable storagedrive 2614 reads from and/or writes to a removable storage unit 2618 ina well known manner. Removable storage unit 2618, represents a floppydisk, magnetic tape, optical disk, etc. which is read by and written toby removable storage drive 2614. As will be appreciated, removablestorage unit 2618 includes a computer usable storage medium havingstored therein computer software and/or data.

In alternative embodiments, secondary memory 2610 may include othersimilar means for allowing computer programs or other instructions to beloaded into computer system 2600. Such means can include, for example, aremovable storage unit 2622 and an interface 2620. Examples of such caninclude a program cartridge and cartridge interface (such as that foundin video game devices), a removable memory chip (such as an EPROM, orPROM) and associated socket, and other removable storage units 2622 andinterfaces 2620 which allow software and data to be transferred fromremovable storage unit 2622 to computer system 2600.

Computer system 2600 can also include a communications interface 2624.Communications interface 2624 allows software and data to be transferredbetween computer system 2600 and external devices. Examples ofcommunications interface 2624 can include a modem, a network interface(such as an Ethernet card), a communications port, a PCMCIA slot andcard, etc. Software and data transferred via communications interface2624 are in the form of signals 2626 that can be electronic,electromagnetic, optical or other signals capable of being received bycommunications interface 2624. Signals 2626 are provided tocommunications interface via a channel 2628. Channel 2628 carriessignals 2626 and can be implemented using wire or cable, fiber optics, aphone line, a cellular phone link, an RF link and other communicationschannels.

In this document, the terms “computer program medium” and “computerusable medium” are used to generally refer to media such as removablestorage device 2618, a hard disk installed in hard disk drive 2612, andsignals 2626. These computer program products are means for providingsoftware to computer system 2600.

Computer programs (also called computer control logic) are stored inmain memory 2608 and/or secondary memory 2610. Computer programs canalso be received via communications interface 2624. Such computerprograms, when executed, enable computer system 2600 to perform thefeatures of the present invention as discussed herein. In particular,the computer programs, when executed, enable processor 2604 to performthe features of the present invention. Accordingly, such computerprograms represent controllers of computer system 2600.

In an embodiment where the invention is implemented using software, thesoftware may be stored in a computer program product and loaded intocomputer system 2600 using removable storage drive 2614, hard drive 2612or communications interface 2624. The control logic (software), whenexecuted by processor 2604, causes processor 2604 to perform thefunctions of the invention as described herein.

In another embodiment, the invention is implemented primarily inhardware using, for example, hardware components such as applicationspecific integrated circuits (ASICs). Implementation of such a hardwarestate machine so as to perform the functions described herein will beapparent to persons skilled in the relevant art(s). In yet anotherembodiment, the invention is implemented using a combination of bothhardware and software.

CONCLUSION

While various embodiments of the present invention have been describedabove, it should be understood that they have been presented by way ofexample only, and not limitation. Thus, the breadth and scope of thepresent invention should not be limited by any of the above-describedexemplary embodiments.

1. A non-transitory computer readable medium having stored therein datarepresenting instructions executable by a programmed processor forcompensating a member from a plurality of members for a customerpurchase, the storage medium comprising instructions operative for:receiving a request from a customer for a purchase, wherein the customeris not previously assigned to one of the members; assigning one of themembers with customer, wherein the assigning is based at least in parton a geographic proximity; processing the request for the purchase,wherein the assignment is transparent for the processed purchase; andcompensating the assigned member for the processed purchase.
 2. Thecomputer readable medium of claim 1 wherein the received request is notfrom a member and the customer is not one of the members.
 3. Thecomputer readable medium of claim 1 wherein the member comprises a thirdparty seller.
 4. The computer readable medium of claim 1 wherein thecompensating is from a multi-level marketing organization that includesthe members.
 5. The computer readable medium of claim 4 wherein themembers sell the organization's products and receive compensation forthose sales.
 6. The computer readable medium of claim 4 wherein futurepurchases by the customer result in additional compensation for theassigned member.
 7. The computer readable medium of claim 1 whereincompensation comprises a volume credited to the assigned member based onan amount paid by the customer for the purchase.
 8. The computerreadable medium of claim 1 wherein the geographic proximity comprises acomparison of postal code for the customer with postal code for themember.
 9. The computer readable medium of claim 1 wherein thegeographic proximity comprises a comparison of zip code for the customerwith zip code for the member.
 10. The computer readable medium of claim1 wherein the assigning further comprises identifying a group of membersthat satisfy at least one condition, including the geographic proximityand assigning the member from that group.
 11. The computer readablemedium of claim 10 wherein the at least one condition further comprisesa type of membership or an amount of activity.
 12. The computer readablemedium of claim 1 wherein the assigned member does not know an identityof the customer when receiving compensation.
 13. A system for providingcompensation to one of a plurality members in a marketing systemcomprising: a memory device having embodied therein information relatingto a plurality of marketing system products or services; and a processorin communication with the memory device, the processor configured to:receive a request from a customer for a purchase of at least one of theproducts or services, wherein the customer is not previously assigned toone of the members; assign one of the members to the customer, whereinthe assignment is based at least in part on a geographic proximity andwherein the assignment is transparent; and compensate the assignedmember for the purchase.
 14. The system of claim 13 wherein the membercomprises a third party seller.
 15. The system of claim 13 wherein themarketing system is part of a multi-level marketing organization thatincludes the members.
 16. The system of claim 15 wherein the products orservices are sold through the organization's website.
 17. The system ofclaim 16 wherein the website provides the customer with an option to becontacted by the assigned member.
 18. The system of claim 13 whereincompensation comprises a volume credited to the assigned member based onan amount paid by the customer for the purchase.
 19. The system of claim13 wherein the geographic proximity comprises a comparison of postalcode or zip code for the customer with postal code or zip code for themember.
 20. A non-transitory computer readable medium having storedtherein data representing instructions executable by a programmedprocessor for compensation to one of a plurality of members, the storagemedium comprising instructions operative for: providing a website forreceiving a request for a purchase from a customer; assigning, when thecustomer is not assigned to any of the members, a member to the customerbased on a geographic proximity; processing a transaction for thepurchase from the customer; and compensating the assigned member for theprocessed purchase, wherein the assignment and compensation aretransparent to the customer.